×

Kenyan shilling treads water as importer demand for dlr looms

NAIROBI, Oct 12 (Reuters) - The Kenyan shilling

held

steady against the dollar on Friday, but traders said the local currency's outlook remained bearish in the days ahead due to importer demand for the greenback.

At 0716 GMT, commercial banks quoted the shilling at 85.05/25 to the dollar, barely changed from Thursday's close of 85.10/30.

"It looks a bit quiet for now, but we could see a bit more pressure on the shilling from importers ... pushing it to its 85.50 support," said Julius Kiriinya, a trader at African Banking Corporation.

Traders see the shilling weakening in the medium term as an aggressive rate-cutting cycle filters through the economy and amid political uncertainty as the east African nation heads towards a general election in March 2013, the first since nationwide violence in 2007.

The central bank has cut the benchmark rate

twice since July by a total 500 basis points to 13 percent, after holding at an ultra-high 18 percent for seven straight months to reign in inflation and foreign currency volatility.

...........................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)

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

Keywords: KENYA MARKETS/