Markets

Kenyan shilling steady, sees support from tea inflows

Published December 18, 2012 Updated December 18, 2012 08:59am

 

The shilling was trading at 86.00/20 at 0748 GMT, the same level it closed at on Monday.

 

"Energy guys are in the market buying dollars, but inflows from remittances are holding them off. Tea inflows are also expected later," said a trader at one commercial bank. Weekly tea auctions are held on Tuesdays in Kenya.

 

Tea and remittances are the largest sources of hard currency in the east African nation, which is the world's biggest exporter of black tea and a substantial diaspora working abroad.

 

The shilling looks set to end 2012 moderately stable, only 1 percent weaker than the dollar, supported by the central bank's efforts to mop up extra shillings from the banking sector via repurchase agreements.

Copyright Reuters, 2012
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