Kenyan shilling up against dollar

13/05/2011 - Kenya property & investment news Posted by Neil King
Kenyan shilling up against dollar

Kenya's shilling has gained against the US dollar as banks are watching the central bank for euro purchases.This morning (May 13th), commercial banks quoted the shilling at 86.00/10 against the dollar, stronger than Thursday's close, Reuters reported.Kennedy Butiko, deputy head of treasury at the Bank of Africa, told the news agency: "Dealers were shaving off some long (dollar) positions."There is, however, underlying demand from the energy sector, so we don't see it appreciating further."A trader at a leading commercial bank noted that the market is waiting to see what the central bank will do, although the shilling remains "fundamentally weak given the activities of the central bank purchasing euros".He added that traders expect the shilling to receive some reprieve from rising interest rates, with inflation in double digits and predicted to continue to rise.Meanwhile, Mr Butiko added that interest from foreign funds could be on the rise if inflation goes up and interest rates rise.