Shilling steady ahead of CBK rate decision

The Kenya’s shilling was steady in early trading on Monday, a day ahead of the central bank’s decision on its benchmark lending rate, traders said.
The shilling was quoted at 102.3040 to the dollar, barely changed from Friday’s close of 102.3545.

“The market is quiet today in anticipation of central bank action,” said one trader at a commercial bank. “Demand is on
hold.”

The central bank intervened several times last week to sell dollars, keeping the currency from reaching the 102.50 mark, traders said. The central bank does not usually comment on any intervention and does not say if it is defending any level.

The shilling has been under pressure this year, partly because of global dollar strength and partly because of domestic issues, such as a widening trade gap and budget deficit.

SOURCE: BUSINESS DAILY