Kenya shilling in slight fall as dollar demand surges

The Kenya shilling fell marginally against the United States dollar on Thursday as it continued with a downward trajectory amid rising demand for the greenback.

The shilling traded at an average of 101.25 to the dollar, down from 101.20 in the previous session.

The Central Bank of Kenya quoted the currency at 101.23 to the dollar, a minimal drop from 101.22 on Wednesday.

Commercial banks, on the other hand, placed the local currency at between 101.10 and 101.30, a slight decline from 101.05 and 101.20 in the Wednesday session.

Currency traders in financial institutions noted that rising dollar demand from retail importers, including manufacturers and oil dealers, was putting pressure on the shilling.

Against the Sterling Pound, the shilling surged to close at 139.80, from 140.50 in the Wednesday session, according to the apex bank.

Analysts say the shilling will remain steady against the dollar in the short term, with the central bank expected to intervene with its 7.1 billion dollar forex reserves in case it faces more pressure from international currencies.

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