NAIROBI: The Kenyan shilling inched lower against the U.S. dollar on Tuesday, under pressure from hard-currency demand across the board, traders said.

At 0915 GMT, the shilling was quoted at 133.75/134.75 per dollar, compared to Monday’s close of 133.25/134.25.

The shilling’s rally this year, fuelled partly by the government resolving a large Eurobond repayment which had spooked investors, has made it one of the best-performing currencies in the world.

But traders say the rally has lost steam, with pressure from foreign-currency demand returning to the market in the last two weeks.

Kenyan shilling slips on FX demand from fuel importers and manufacturers

“All the people who were sitting on the sidelines expecting the shilling to strengthen further have now come in to buy dollars,” one trader said.

The local currency remains up about 17% against the dollar since the start of the year, according to LSEG data.