NAIROBI: Kenya's shilling weakened against a globally stronger dollar on Monday, and traders expected further losses for the local currency after some relief came from inflows last week.
By 0745 GMT, the shilling was trading at 91.35/45 to the dollar, after closing at 91.25/35 on Friday - the shilling's strongest levels in more than two weeks.
Traders had said on Friday that the release of the US jobs data would determine the shilling's next move.
The data - released after Kenyan markets were closed - beat market expectations and strengthened the dollar globally, putting pressure on frontier currencies such as the shilling.
"The dollar is still globally strong," said Martin Runo, a senior trader at Chase Bank.
"Last week it (the shilling) was supported by some tight liquidity and some inflows which came into the market. But now the liquidity is starting to look better," he said.
Hard currency inflows came into the market last week from coffee and tea earnings, transfers by non-governmental organisations and foreign direct investment into real estate.
Prior to last week's strong gains, the shilling has been losing ground steadily in the past 12 months or so, partly driven down by a spate of militant attacks that hit the tourism industry, a vital source of dollar revenues.
Traders say the dollar's strength has added pressure.
Runo forecast the shilling to start weakening, and could move into 92 levels against the dollar by the end of the week.
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