Kenyan shilling stabilises, helped by rate hike

NAIROBI: The Kenyan shilling was stable against the dollar on Friday, buoyed by the central bank’s policy rate hike earlier this week.

At 1040 GMT, a trader at a commercial bank quoted the shilling at 153.20/40 per US dollar, the same level as Thursday’s close.

“Since the rate hike we’ve seen the shilling steadying somewhat.

There’s a feeling the shilling will hold at this level until the new year,“ the trader said.

Kenyan shilling slightly firmer after big rate hike

On Tuesday Kenya’s central bank raised its main lending rate by 200 basis points to 12.5%, saying the shilling’s slide this year to repeated record lows had spurred price pressures, curbed foreign investment and affected debt-servicing.

The shilling has lost about 19.5% against the dollar this year, LSEG data show.