Shilling under pressure on importers’ dollar demand

The shilling weakened this week, hitting a low of 100.89 units against the dollar, 50 cents lower than last week’s opening level with expectation that it will hit 101 units with the end-of-month demand.

The shilling weakened this week, hitting a low of 100.89 units against the dollar. FILE PHOTO | NMG 

IN SUMMARY

  • Reuters news agency quoted traders saying that even as the shilling remained steady Thursday, it is expected to ease on importer dollar demand from oil companies and manufacturers.
  • Commercial banks quoted the shilling at 100.60/70 to the dollar, compared with Tuesday's close of 100.55/65, Reuters data showed.

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The shilling weakened this week, hitting a low of 100.89 units against the dollar, 50 cents lower than last week’s opening level with expectation that it will hit 101 units with the end-of-month demand.

Reuters news agency quoted traders saying that even as the shilling remained steady Thursday, it is expected to ease on importer dollar demand from oil companies and manufacturers. Commercial banks quoted the shilling at 100.60/70 to the dollar, compared with Tuesday's close of 100.55/65, Reuters data showed.

However, factors putting pressure on the dollar also have the potential to push the local unit in the opposite direction.

Commercial Bank of Africa said that the dollar was also under pressure following US President Donald Trump’s troubles with the law after his former personal lawyer implicated him in campaign finance violations.

The greenback also suffered a blow after Trump’s comments that the Federal Reserve’s raising of interest rates showed that the central bank did not back his economic plan.

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