NAIROBI: The Kenyan shilling was steady on Thursday and traders said they expected it to weaken in coming days due to importer demand from energy companies.
At 0816 GMT, commercial banks quoted the shilling at 87.80/90 to the dollar, compared with Wednesday's close of 87.80/88.00.
Traders said the shilling was expected to weaken once importers - who are sitting on the sidelines waiting for the shilling to strengthen - come in to buy dollars to pay for their end-month obligations.
"I still favour a weaker shilling. The shilling should be under pressure, though right now it's supported because the importer bids are below where the market is trading," a senior trader at one commercial bank said.
The trader said the dollar demand in the market is mostly from companies in the energy sector but they are only willing to buy at a lower level than 87.80/90.
"As long as there is that demand it is supportive of the dollar," the senior trader said.
The shilling, which has lost 1.4 percent against the dollar so far this year, is forecast to trade in the 87.70 to 88.20 range in coming days.
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