NAIROBI: The Kenyan shilling was steady in early trading yesterday, a day ahead of the Central Bank’s decision on its benchmark lending rate, traders said.
By 10.15 am, the shilling was quoted at 102.30/40 to the dollar, barely changed from Friday’s close of 102.35/45. “The market is quiet today in anticipation of central bank action,” said one trader at a commercial bank. “Demand is on hold.”
The Central Bank intervened several times last week to sell dollars, keeping the currency from reaching the 102.50 mark, traders said. The Central Bank does not usually comment on any intervention and does not say if it is defending any level.
The shilling has been under pressure this year, partly because of global dollar strength and partly because of domestic issues, such as a widening trade gap and budget deficit.
