NAIROBI, Nov. 7 (Xinhua) -- The Kenyan shilling surged against the U.S. dollar on Thursday to trade below 103 level for the first time in three months, boosted by the repeal of a law capping commercial bank lending rates.
The shilling appreciated against the dollar to close the Thursday trading at 102.95 from 103.19 recorded Tuesday.
However, commercial banks quoted the local currency at a high of 102.85 to the dollar, as Central Bank placed the exchange rate at 102.95.
Analysts attributed the surge to foreign investors inflows at the stock market, especially for those buying bank stocks, which have been on a rally since the plan to repeal the law was mooted.
President Uhuru Kenyatta assented to the law that removed the interest rate capping on Thursday, further boosting confidence in the bank stocks that sustained a rally at the Nairobi bourse.