NAIROBI: The Kenyan shilling was steady on Tuesday and tipped to stay in a narrow range, supported by tight money markets.
At 0801 GMT, commercial banks quoted the shilling at 87.75/85 to the dollar, compared with Monday's close of 87.80/85.
The weighted average interbank lending rate rose to 10.5181 percent on Monday from 10.1280 percent on Friday, indicating a liquidity squeeze.
Traders said liquidity was likely to remain scarce for a while, offering support to the shilling by making it slightly more expensive to fund long dollar positions.
"We don't see any sign of a reprieve because we haven't seen much government spending yet," Nahashon Mungai, trader at KCB Bank Group, said.
He said were was some demand for dollars on Friday and Monday, and there was a bias for the shilling to gain ground once this subsided.
Traders forecast the shilling, which has lost 1.3 percent this year, would trade in the 87.60 to 88.05 range in coming days.
Comments
Comments are closed.