NAIROBI: Kenya's shilling was slightly stronger in early trading on Friday after some pressure on the currency was lifted by dollar sales from the central bank in the previous sessions.
By 0713 GMT, the shilling was trading at 90.95/91.15 to the dollar, compared with Thursday's close of 91.10/20.
"At this point the fortunes of the shilling are dependent on global factors. What weakened it sharply was the dollar rally globally," said Chris Muiga, senior trader at National Bank of Kenya. "That is the main thing to watch right now."
He said the currency was finding some respite after Thursday's central bank dollar sales but added that domestic factors could weigh when fuel importers and other businesses sought dollars to meet payments later in the month.
That could herald renewed pressure on the currency, as inflows of dollars into Kenya have been hit hard by the slide in tourism receipts in the wake of militant attacks on the country.
Nahashon Mungai, a trader at Kenya Commercial Bank, added that trading on the last day of the week tended to be subdued but could also bring some volatility due to the low volumes.
Comments
Comments are closed for this article.