NAIROBI (Xinhua) --
The Kenya shilling weakened slightly
against the U.S. dollar on Tuesday following increased
dollar demand from importers.
currency traded against the dollar at 103.4, data from
the Central Bank of Kenya (CBK) showed Tuesday, down
from 103.3 at the close of last week ahead of Easter
banks, however, quoted the shilling at 103.45 as traders
blamed the fall to increased dollar demand from oil
was under pressure last week forcing the apex bank to
sell some dollars to strengthen it. Central Bank data
indicated that the regulator used some 50 million
dollars last week as foreign exchange reserves dropped
from 8.02 billion dollars or 5.3 months of import cover
to 7.9 billion dollars or 5.2 months of import cover.
Cytonn, a Nairobi-based investment firm, noted that in
the short-term, the shilling is being affected by retail
importers’ demands and a rise in global oil prices.
the long-term, the shilling would continue to come under
pressure due to the global strengthening of the dollar
ahead of a planned rate hikes in the course of the year.
Thursday, the shilling ended the week flat at 103.3 but
on a year-to-date basis, the shilling has depreciated
against the dollar by 0.9 percent.