Kenya: Shilling Recoups Lossesn Against Dollar

Nairobi Star (Nairobi)

Reuters

23 June 2011

Kenya’s shilling firmed from a new all-time low after commercial banks cut their dollar positions, but ignored the central bank governor’s comments that he would take action against speculators, traders said.

Governor Njuguna Ndung’u did not specify what measures the bank would take, and reiterated that intervening to prop up the shilling, which has tumbled more than 10 percent against the dollar this year, would worsen the situation. The central bank said it was also in the market to mop up 500 million Kenya shillings of liquidity, which had little impact on the shilling, traders said.

The shilling traded at 90.80 to the dollar at 0836 GMT, after hitting 90.70 earlier and off the 91.90 low it hit earlier in the session. The currency closed Tuesday’s trade at 91.45/95 against the dollar. Traders said they expected the shilling to trade in the 88.00-92.00 range in coming days.

AllAfrica – All the Time