NAIROBI (Xinhua) --
The Kenya shilling gained more ground against the
U.S. dollar on Wednesday, clocking 103.2 following continued
rise of inflows ahead of the Easter holiday.
The shilling had on
Tuesday climbed up 0.05 percent to 103.3 boosted by increased
dollar inflows amid low demand from oil importers. The currency
had also on Monday gone up by the same margin.
The Central Bank of
Kenya (CBK) on Wednesday quoted the shilling at an average of
103.4 but commercial banks put the local unit against the dollar
at a high of 103.2 and a low of 103.3.
The shilling has
been under pressure in the last weeks declining to 103.5 against
the dollar following increased dollar demand from oil and retail
On a year-to-date
basis, the shilling has depreciated against the dollar by 0.9
percent, while it has depreciated by 0.4 percent since the U.S.
Fed rate hike in mid-March.
Two things are
expected to affect the shilling moving forward. First is the
global strengthening of the dollar due to planned rate hikes in
the course of the year, and second, the recovery of global oil
currently has 8 billion dollars in foreign exchange reserves
which the CBK can use to buttress the currency in case of
climbs up on rise in dollar inflows
reserves hit record 8 bln USD on inflows from external lenders