NAIROBI: Kenya’s shilling was little changed against the dollar on Wednesday, with traders looking for direction from an expected rate hike by the U.S. Federal Reserve later in the day.
By 0805 GMT, the shilling was quoted at 102.20/30 to the dollar, unchanged from Tuesday’s close.”Volumes are very low. Christmas mood is already in,” said one Nairobi-based trader
The U.S. Federal Reserve meets at 1900 GMT on Wednesday to begin what is expected to be a series of interest rate increases after years of easy money policies. “Today Fed is meeting so we will get a clear direction tomorrow,” added the trader.
Many firms have been treading cautiously ahead of the U.S. rate decision. If the Federal Reserve does raise rates, it would put pressure on emerging market currencies as investors sell riskier assets.
