NAIROBI: The Kenyan shilling lost ground on Wednesday on demand for dollars by energy companies, with traders expecting the local currency to weaken again in coming days.
At 0710 GMT, commercial banks posted the shilling at 87.60/70 per dollar, compared with 87.45/55 at Tuesday's close.
Traders said the shilling has come under pressure because energy companies were buying up dollars.
"That's been there for the last three days and that's still unmet, so we expect the shilling to weaken a bit (more)," said Joshua Anene, a Commercial Bank of Africa trader.
Anene said attacks by Islamist al Shabaab militants have spooked international companies and investors, making them wary of putting money into east Africa's biggest economy.
"As a result of that, we have seen heightened demand from the corporate sector for dollars," Anene said.
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