US dollars held against a currency exchange rate board at a forex bureau in Nairobi. FILE PHOTO | NMG
The shilling was steady against the dollar Wednesday on the back
of even greenback demand and supply, while signs of tightening
liquidity following a sustained regulator mop-up also offered
support.
support.
Commercial
banks quoted the local currency at an average of 103.90 in early
afternoon interbank trading, little changed from Tuesday’s closing
average of 103.86.
The shilling is also coming off the
end month period when dollar demand is usually amplified by importers
looking to settle overseas obligations.
“Market players
witnessed subdued activity in the local forex counters, as dollar
demand continued to grip the market and absorb any supply, keeping
volatility at a minimum,” said Commercial Bank of Africa in a treasury
note.
The CBK has also been mopping up large amounts in
excess liquidity from the market in recent days, which has helped keep
volatility low.
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