Kenya's shilling firmed against the dollar on Friday as dollar sellers cashed in on six month lows and dealers said it could gain more ground. The commercial banks quoted the unit at 69.95/70.05 against the dollar compared to Thursday's close of 70.40/50. Traders said the shilling was likely to firm toward the 69.00 level in the coming days as corporate appetite for the US currency weakened.
"Levels above 70.00 were very attractive, there were some sellers who came in this morning," said Stephen Lagat, a CFC Stanbic dealer. "It could reverse to 69.50 but if there is momentum in the other direction, it could lose again." Dealers said the fall of the unit in the previous two sessions, which was accompanied by volatility, could also be attributed to a resurgent dollar globally.
"The dollar is strengthening and the shilling was also affected," said Neha Radia, a corporate dealer at Standard Chartered. During Wednesday's session, the shilling lost 2.18 percent against the dollar.
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