Kenyan Shilling Edges Closer to Ksh130 Against Dollar as Pound Rises to Ksh175

The Kenyan shilling traded close to the Ksh130 mark against the US dollar in the week ending November 6, while losing value against the British pound and the euro, according to data from the Central Bank of Kenya (CBK).

The local currency closed the week at Ksh129.96 against the dollar, unchanged from the previous Friday. The rate left it just four cents below Ksh130, a level that has remained a key point of focus in the country’s foreign exchange market.

Despite the shilling’s position near the psychological mark, traders expect it to remain relatively stable in the coming days. Reuters reported that commercial banks quoted the currency at between Ksh129.85 and Ksh130.05 against the dollar on Friday.

The quotations represented a slight movement compared with the previous Thursday, when banks offered rates ranging between Ksh129.90 and Ksh130.00.

However, the shilling weakened against other major currencies during the week, making it more expensive for Kenyans to purchase pounds and euros.

The British pound rose to Ksh175.18 from Ksh173.04 in the week ending October 29, gaining Ksh2.14 against the local currency.

The euro also strengthened, climbing to Ksh146.27 from Ksh144.78 over the same period. This represented an increase of Ksh1.49, according to the CBK’s weekly bulletin.

The movements mean Kenyans making payments in the two currencies could spend more shillings than they did a week earlier. The changes may also affect people sending money abroad, businesses importing goods and travellers planning trips to Europe or the United Kingdom.

On the international market, the US dollar gained ground on Friday as investors sought safer assets following a technology-led sell-off in equity markets.

The US Dollar Index, which measures the greenback against a basket of major currencies, rose by 0.4 per cent to slightly above 102 points. It reached its highest level of the week at the time of the report.

The global movement came as the Kenyan shilling maintained its position against the dollar but recorded losses against the pound and euro.

LINK: https://www.kenyans.co.ke/news/129201-kenyan-shilling-nears-ksh130-against-us-dollar-pound-hits-ksh175?fbclid=IwZXh0bgNhZW0CMTEAcGRvZgRzcnRjBmFwcF9pZA80MDk5NjI2MjMwODU2MDkAAR91kbItZBze8IQGmcqlWV7Tscc3VdQUg8NqnJm2V4sIOTNw8pVo0_9AoCJqXA_aem_bLWNigbEj9Bxpjv8a9pf-w