Title: Kenyan Shilling Dips Against Dollar Amidst Foreign Currency Demand
In Nairobi, the Kenyan shilling experienced a slight decrease against the U.S. dollar on Tuesday, attributed to a surge in demand for hard currency across various sectors, according to traders.
As of 0915 GMT, the shilling was valued at 133.75/134.75 per dollar, marking a marginal decline compared to Monday’s closing rate of 133.25/134.25.
The shilling had shown remarkable strength earlier in the year, bolstered in part by the government successfully addressing a significant Eurobond repayment, a development that had initially unsettled investors. This performance had positioned it among the top-performing currencies globally.
However, recent reports from traders suggest that this upward momentum has tapered off, with foreign currency demand resurging notably over the past fortnight.
Kenyan shilling slips on FX demand from fuel importers and manufacturers
“One trader noted, “All the people who were sitting on the sidelines expecting the shilling to strengthen further have now come in to buy dollars.”
Despite the recent dip, the local currency has still appreciated by approximately 17% against the dollar since the beginning of the year, as indicated by LSEG data.
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