Traders said they expected the Kenya shilling to trade in the 91.10 to 91.40 range in coming days.
At 0735 GMT, banks quoted the shilling at 91.20/30 to the dollar, unchanged from Monday's close.
The Kenyan shilling held steady on Tuesday but traders said they expected it to weaken in coming days due to dollar demand from sectors such as energy and telecommunications.
At 0735 GMT, commercial banks quoted the shilling at 91.20/30 to the dollar, unchanged from Monday's close.
Traders said the shilling was expected to stay under pressure, with demand for dollars coming from energy and telecommunications companies and other goods importers.
“There has been real demand in the market recently, from last week and this has also been seen this week. And there don't seem to be signs that the demand will wear off soon,” said Nahashon Mungai, a trader at Kenya Commercial Bank.
“At the moment demand surpasses any supply we might be getting for dollars in the market. So the current trend is still a bearish one for the shilling.”
Traders said they expected the shilling, which has lost 0.6 per cent versus the dollar so far this month, to trade in the 91.10 to 91.40 range in coming days.
The Central Bank of Kenya said it was seeking to mop up Sh11 billion ($120 million) in excess liquidity from the money markets using repurchase agreements, or repos.
By mopping up excess liquidity, the central bank makes it more expensive to hold dollars, thereby giving the shilling some support.
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