NAIROBI (Xinhua) --
The Kenyan shilling has declined to an
eight-month low against the U.S. dollar affected by negative
sentiments in the market.
The local currency
traded at 101.85 on Wednesday down from 101.73 in the previous
session, the central bank showed, with analysts noting negative
sentiments had helped push the unit lower.
The last time the
shilling traded at such a level was in February at the time
Kenya was in political distress following elections in October
One of the
sentiments that has affected the shilling is the indication by
the International Monetary Fund (IMF) that the currency is
overvalued by up to 17.5 percent.
The global lender
noted last week that the shilling risked being classified as
“managed” rather than operating on the forces of demand and
supply due to frequent backing up of the currency by the central
bank through sale of dollars.
On Tuesday, reports
that Kenya will go for over 2.5 billion dollars external
financing via the Eurobond and syndicated loans also affected
Other factors that
have affected the shilling are excess liquidity in the money
market and increased demand for the dollar by oil importers.