NAIROBI: The Kenyan shilling was steady on Wednesday and traders said it was expected to stay under pressure due to importer dollar demand.
At 0757 GMT, commercial banks quoted the shilling at 91.35/45 to the dollar, compared with 91.30/40 at Tuesday's close.
"The shilling remains on the backfoot. Though right now what we are seeing is a slowdown in importer (dollar) buying, we should remain in the backfoot. The outlook still remains weak for the shilling," a senior trader at one commercial bank, said.
The central bank's Monetary Policy Committee will announce later in the day its latest decision on the bank's key lending rate.
In a Reuters poll, all 12 analysts expected the bank to keep the rate at 8.50 percent, where it has been since May 2013.
Traders said no change in rates had been factored into the shilling's trade.
"I think they would choose to hold the rate, because right now they would want to protect the shilling. I don't think they would cut despite the inflation figures coming off," the senior trader said.
Year-on-year inflation in Kenya eased to 6.02 percent in December from 6.09 percent a month before.
Traders said they forecast the shilling to trade in a range of 91.25 to 91.45 in coming days.
Comments
Comments are closed.