Kenya shilling falls slightly pending ruling on presidential poll petition

Source: Xinhua| 2017-08-31 00:43:19|Editor: huaxia
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by Bedah Mengo

NAIROBI, Aug. 30 (Xinhua) -- The Kenyan shilling weakened marginally against the U.S. dollar on Wednesday as the market awaited a ruling by the Supreme Court on a poll petition challenging the re-election of President Uhuru Kenyatta.

The shilling went down 0.01 percent to close the day at an average of 102.2 to the dollar as the currency showed some stability.

The Central Bank of Kenya on Wednesday quoted the shilling at 103.18 down from 103.17 in the previous session.

On the other hand, commercial banks put the value of the currency at between 103.15 and 103.35, which was the same range it had traded in the previous day.

Traders at the financial institutions noted that the shilling was waiting for direction from the Supreme Court as the ruling set for Friday will determine whether it loses or strengthens.

The apex court on Wednesday concluded the hearing of the case after the several parties made their final submissions and the seven judges took a break to write their verdict.

Analysts noted that whatever the direction the shilling takes, they expect the forex exchange reserves level, currently at 7.5 billion dollars, an equivalent of 4.96 months of import cover, to be maintained by expected inflows from tourism, tea and horticulture exports and diaspora remittances. Enditem