NAIROBI: Kenya's shilling weakened slightly in quiet Friday morning business as traders bought dollars to square positions before the weekend, while demand for shillings to meet tax payments could help strengthen the currency next week.
By 0720 GMT, the shilling was 89.05/89.15 to the dollar, modestly weaker than Thursday's close of 89.00/89.10 but still in a tight range of recent sessions of roughly 89.00 to 89.30.
"It's Friday so typically we don't see a lot of trading volumes today," said Nahashon Mungai, a trader at Kenya Commercial Bank. "Traders want to close for the weekend square."
"We remain stuck in a range but with a bias for a stronger shilling near term," he said, adding mid-month tax payments falling due next week would lift demand for the Kenyan currency.
Further support for the currency, which weakened after a spate of attacks drove away many tourists and their dollars, could come from foreigners seeking shillings to buy a 12-year infrastructure bond this month, said Chase Bank's Martin Runo.
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