Market News

Inflows bolster shilling’s gain on dollar

A forex bureau in Nairobi.
A forex bureau in Nairobi. The shilling gained on the dollar on Friday. FILE PHOTO | NMG 

The shilling gained on the dollar on Friday, supported by inflows from the diaspora and foreign investors in government securities, easing back some of the depreciation seen earlier in the week.

Commercial banks quoted the shilling at 100.55 on average in the interbank market, compared to Thursday’s average of 100.70.

Traders said the uptick in inflows was complemented by easing of end month dollar demand from importers looking to settle obligations with overseas suppliers, which normally weigh on the shilling.

The recovery of the shilling was evident after demand for the greenback by interbank and corporate players subsided, pushing the exchange rate marginally lower,” said Commercial Bank of Africa in a market note yesterday.

The shilling is been one of the few currencies that have strengthened against the dollar globally, with many regional peers recording significant depreciation.