The shilling has hit a three-month high against the dollar,
gaining ground on easing of political heat in the country following the
decision by the Nasa coalition to fight their election protest through
the...
courts.
courts.
Traders said importers have reduced their
demand for dollars on the back of a return to normalcy in the economy,
which coupled with some support by the Central Bank of Kenya (CBK), has
stabilised the shilling.
The
CBK’s mean indicative rate for the shilling stood at 103.23 units to
the dollar on Monday, up from 103.37 on Friday. It is the highest the
shilling has gone against the dollar since May 16.
“The
dollar has been softening, on account of reduced political pressures in
the market which had been affecting importers. The regulator has also
remained active in the market offering support to the local unit, as
indicated by the $26 million decline in the foreign reserves to $7.42
billion (4.93 months of import cover),” said Kingdom Securities in a
market brief.
“The reserves have been on a downtrend
since late April, demonstrating the interventions the regulator has made
towards propping the local unit.”
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