Kenya shilling sets record low of 105 against dollar

NAIROBI: Kenya's shilling sunk to a record traded low of 105 per dollar on Tuesday as banks covered short positions amid market uncertainty which direction the shilling would take, traders said.

At 0650 GMT commercial banks quoted the shilling 104.90/105.30 compared with Monday's close of 103.50/104.00.

Shilling trading has remained volatile since the Central Bank of Kenya raised its key lending rate by an unprecedented 400 basis points to 11 percent last week in an effort to stabilise the battered local currency and put a lid on consumer prices.