The Kenyan currency has fallen below the psychological barrier of 104 shillings to one US dollar as currency traders quoting it at 104.05 to the greenback on Monday morning.
The Kenyan shilling had been under pressure from an increase in demand from importers of oil products and retail goods as well as dollar strength and had been flirting with the 104 psychological barrier against the dollar over the past two weeks.
Commercial banks here quoted the shilling at 103.95/104.05 to the US dollar at mid-morning Monday with currency traders saying the shilling was expected to remain under pressure in coming days, fueled by increasing demand for fuel after member countries in the Organization of Petroleum Exporting Countries (OPEC) reduced output to shore up prices.
One trader said imports of foodstuffs to reduce the impact of the current drought would further put pressure on the shilling to weaken further.
The Central Bank of Kenya quoted the shilling at 103.79 buying and 104.04 selling at the opening of trading Monday.
Source: NAM NEWS NETWORK