NAIROBI: The Kenyan shilling was a touch stronger on Wednesday, with diminishing dollar demand lifting the local currency while traders said the outcome of planned political rallies over the next week should determine the shilling's direction.
At 0850 GMT, commercial banks quoted the shilling at 87.70/80 to the dollar amid thin volumes, compared with Tuesday's close of 87.80/90.
"The end of (dollar) demand that had spilled over in the first day of the month has been diminishing now," said Andlip Nazir, senior trader at I&M Bank.
Political tensions have been rising in recent weeks in Kenya amid accusations by the government that the opposition was recruiting members of a banned criminal gang ahead of mass rallies planned over the weekend and Monday.
The opposition CORD coalition has dismissed the claims as scaremongering and vowed to hold the rallies despite fears their supporters could clash with backers of President Uhuru Kenyatta's Jubilee coalition which plans to stage rival rallies.
"The political situation is now going to determine the direction," Nazir added.
Kenya was shaken by inter-ethnic violence after the disputed 2007 poll, with ensuing clashes crippling the economy.
Comments
Comments are closed.