Kenya's shilling slid against the dollar on Monday due to demand for the US currency from banks and corporate customers who were taking advantage of relative shilling strength. The commercial banks posted the unit at 76.55/65 against the dollar compared with Friday's closing rate of 76.20/30.
"The shilling fell at opening on banks' short covering as corporate (customers) took advantage of the low levels," said Dickson Magecha, head of trading at Diamond Trust Bank. Traders said the shilling is likely to cut some of its losses against the greenback due to the absence of the central bank.
The regulator has been buying dollars to boost its foreign exchange reserves and to inject shillings into the market. It would, however, remain within a tight band, they added. "We expect to remain within the range 76.20-76.80," said Chris Rwengo, head of trading at Standard Chartered Bank.
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