The Kenyan shilling eased against the US dollar on Friday in thin trading as the local unit searched for direction, dealers said. The leading commercial banks posted the local unit at 64.40/50, compared with Thursday's closing level of 64.35/45.
"It's very quiet today on both interbank and corporate sides. The slight loss is due to banks covering their short positions ahead of the weekend," said Benson Kaburu, a trader at Standard Chartered Bank.
Dealers said they were waiting to see how the local currency reacted to the traditional end-month demand for dollars. "As we approach end-month I believe corporate demand might pick up and we might see a further depreciation, maybe to 65.00," Kaburu said.
Traders said the shilling was still looking for direction following the just-concluded Safaricom flotation.
Kaburu said that when all refund cheques - especially to regional investors - have been issued, the market might show a clear direction. "If inflows are good, we might see it strengthening," said Aman Lote, a dealer at Imperial Bank. Dealers said they saw the trading at 64.00-65.00 against the dollar over the coming days.
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