Kenya shilling falls slightly on high end-month dollar demand

Source: Xinhua| 2017-06-28 01:43:11|Editor: Mu Xuequan
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NAIROBI, June 27 (Xinhua) -- The Kenyan shilling went down marginally against the U.S. dollar on Tuesday as demand for dollars by retail importers went up.

The currency exchanged at an average of 103.70 Tuesday, down from 103.60 last Friday where it had stayed unchanged for the better part of the week.

The Central Bank on Tuesday put the value of the currency at 103.67, a decline from 103.63 against the dollar.

Commercial banks, on the contrary, put the value of the shilling to the dollar at a lower level of 103.73, with traders in the financial institutions noting the shilling was under intense pressure from oil importers after the Eid holiday in Kenya celebrated on Monday.

The shilling depreciated by 0.1 percent against the dollar last week to close at 103.63, driven by increased dollar demand from oil importers and a globally strengthening dollar.

On a year-to-date basis, the shilling has depreciated against the dollar by 1.1 percent as the Central Bank continues to support the currency as can be seen by the slight decline in the forex reserves over the last few weeks.

The crucial dollar reserves last week closed the week at 8.1 billion dollars or an equivalent of 5.4 months of import cover, down from 8.2 billion dollars the previous week, an indication that the bank had sold dollars to buttress the shilling.

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