NAIROBI: Kenya’s shilling weakened in early trading, slipping back towards 3-1/2-year lows despite dollar sales by the central bank for three sessions in a row.
“The fundamentals are still pointing to a weaker shilling,” said one senior trader, citing global dollar strength, poor earnings from tourism and a widening current account deficit.
Traders said the central bank sold dollars on Wednesday afternoon, after interventions on Monday and Tuesday. The bank’s interventions have offered only brief support to the shilling.
By 0653 GMT, the shilling was trading at 102.10/20 to the dollar, compared with 101.90/102.00 at Wednesday’s close. The shilling has been hovering near lows last seen in October 2011, when the currency hit an all-time low around 106. One trader said he expected the central bank to sell more dollars on Thursday.
