Kenyan shilling firm, eyes on any central bank action

The Kenyan shilling was steady against the dollar on Wednesday and traders said it would keep moving in a narrow range given prospects of central bank intervention, while shares edged higher.

By the 1330 GMT official close, commercial banks posted the shilling at 102.10/20, compared with Tuesday’s close of 102.15/25.

Traders said the shilling would be stuck in a tight range of 102.00 to 102.50, on concerns the central bank could step in to stop any volatility by selling dollars.

“It should weaken but the central bank is keeping a close eye,” said a senior currency trader at a commercial bank.

Another dealer noted subdued corporate demand for dollars, also easing pressure on the Kenyan currency. The shilling, which is down 11 percent this year, dropped close to a record low in September before stabilising on the back of high lending rates and central bank dollar sales.

On the share market, the benchmark NSE 20 index rose 24.16 points, to close at 4,044.72 points.

On the secondary market, government bonds worth a total 658.5 million shillings were traded, compared with 370.8 million shillings the previous session.