NAIROBI: The Kenyan shilling was marginally weaker early on Tuesday, with traders expecting the central bank to sell dollars to support the currency if it continues easing.
At 0725 GMT, commercial banks posted the shilling at 90.35/45 amid thin volumes, weaker than Monday's close of 90.30/40 to the dollar.
"We are trading near 90.45 and from past trend we have seen (the central bank) intervene when we get to that level. The market is keen to see whether they will intervene," said a trader at a Nairobi-based commercial bank.
Traders said the bank sold dollars last Wednesday to defend the local currency when the shilling neared the 90.50 level.
The local currency has lost 4.8 percent against the dollar this year despite frequent interventions by the central bank to prop up the shilling, including dollar sales.
The bank has also been regularly mopping up excess money market liquidity, which lends support to the local currency.
The shilling has been under pressure this year due to a slump in revenues from tourism, a major hard currency earner that has been hurt by a spate of militant attacks. Hard currency earnings from tea exports have declined due to a global glut of the commodity and the dollar has strengthened in recent weeks.
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