Capital Markets

Shilling firms up on diaspora inflow support

SHILLING

The currency was bought at 100.7250 and sold at 100.9250 on Thursday. FILE PHOTO | NMG

The shilling gained nearly 20 cents at the opening of the markets Thursday to hit an average of 100.8250 units to the dollar, Central Bank of Kenya data showed.

The currency was bought at 100.7250 and sold at 100.9250 largely supported by diaspora remittances.

On Wednesday, the mean exchange rate to the greenback stood at 101.00 units, buying at 100.90 and selling 101.1 – giving a mean of 101.00.

Some market analysts said they still expected the shilling to vacillate between strength and weakness despite the strengthening seen from Tuesday.

Commercial Bank of Africa (CBA) said foreign currency sellers had on Wednesday “stormed the local forex market to dictate the direction of the US dollar/Kenya shilling pair, with the greenback compelled to march lower following a barrage of foreign currency inflow, with little seen from the demand counter”.

“We see the domestic unit trading within the 100.70–102.00 albeit with a bullish tinge as activity on the supply counter could keep the shilling supported,” said CBA.