GO
Loading...

Kenyan shilling under pressure as importers buy dollars

Thursday, 11 Oct 2012 | 5:12 AM ET

NAIROBI, Oct 11 (Reuters) - The Kenyan shilling fell marginally against the dollar on Thursday as it came under further pressure from importers in the telecoms and energy sectors buying the U.S. currency, traders said.

The shilling

was trading at 85.15/25 to the dollar at 0739 GMT, a touch weaker than Wednesday's close of 85.05/25.

"Sentiment still points to a weaker shilling. We've seen dollar demand from telecoms and energy guys while inflows are still low," said Solomon Alubala, head of trading at Co-operative Bank.

Technical analysis charts showed the shilling's support level at 85.50, and traders said if it were to cross that, it could weaken to touch the 86.00 level.

The shilling is up just 0.1 percent against the dollar this year.

It had gained as much as 2 percent in the first half of the year due to a credit squeeze after the central bank held interest rates at an ultra high 18 percent for seven months, but started falling in July after policymakers started monetary easing as inflation fell.

...........................Shilling spot rates

.....................Shilling forward rates

.......................Cross rates

..................................Local contributors

.......................Central Bank of Kenya Index

.....................Kenyan Bonds contributor pages

...............Treasury bill yields

..................Central bank open market operations

.........................Horizontal repo transactions

,

................Daily interbank lending rate

.............................Kenya Bond pricing

..................Real time Africa economic data

...........................African economic news

.................................NSE-20 Share Index

.................................NSE All Share Index

...........................FT NSE Kenya 15 Index

.......................... FT NSE Kenya 25 Index

SPEED GUIDES:

(Reporting by Kevin Mwanza; Editing by Richard Lough and Susan Fenton)

((nairobi.newsroom@reuters.com)(Tel: +254 20 2224717))

Keywords: KENYA MARKETS/