Kenya shilling weakens marginally as market remains volatile

Source: Xinhua| 2017-09-04 23:48:04|Editor: huaxia
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by Bedah Mengo

NAIROBI, Sept. 4 (Xinhua) -- The Kenya shilling weakened slightly against the U.S. dollar on Monday as the market continued to come to terms with the nullification of presidential election results.

The shilling traded at 103.2 against the dollar, a marginal decline from last Friday's position where the local unit closed the week at 102.82, according to the Central Bank of Kenya (CBK).

The apex bank placed the value of the currency at 103.16 to the dollar on Monday, a weaker position from the previous session.

On the other hand, commercial banks quoted the shilling at between 103.15 and 103.35 per dollar, with traders noting the shilling was volatile in the wake of the Supreme Court ruling.

However, analysts noted that the shilling would stabilize and even gain in the coming weeks once the market overcomes shockwaves caused by the cancellation of President Uhuru Kenyatta's win in Aug. 8 polls.

"In our view, the shilling should remain relatively stable to the dollar in the short term, supported by CBK's activity as they have sufficient support through forex reserves, currently at 7.5 billion dollars, an equivalent to five months of import cover," said Cytonn, a Nairobi-based investment firm. Enditem