Shilling down on US dollar

Business Daily Kenya:  DEPRECIATION: The shilling depreciated by almost 15 per cent from 103.90/104 to the US dollar on Monday compared to...

Business Daily Kenya: 

Money. Photo/Courtesy

DEPRECIATION: The shilling depreciated by almost 15 per cent from 103.90/104 to the US dollar on Monday compared to 104.05/15 quoted yesterday. The currency was lastly quoted 104.10/20 January last year.

Analysts attributed the weakening – which is nearly six-month low- to dollar demand from oil companies, food importers and firms paying dividends to investors abroad. Central Bank of Kenya, however, mopped up the excess liquidity, traders said.

Last week, the shilling depreciated by 0.2 per cent against the dollar to hit Sh103.8 from Sh103.7 the previous week, mainly driven by increased dollar demand from merchandise and oil importers.

According to Maurice Oduor, Cytonn Investment, on a year- to-date basis, the shilling has depreciated against the dollar by 1.3 per cent.

“In our view, the shilling should remain relatively stable in the short term, supported by the forex reserve level currently at $7.9 billion and the IMF precautionary credit facility of $1.5 billion that Kenya can utilise to stabilise the shilling in the case of adverse movement in the forex market,” he said.

The post Shilling down on US dollar appeared first on Mediamax Network Limited.

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