- For a second consecutive day, the Kenya Shilling today exchanged above Ksh 84 to the US dollar, settling at Ksh 83.96 compared to Ksh 83.94 yesterday, CBK data shows.
Against the Euro, the shilling was today 20 cents stronger, exchanging at Ksh 102.93 up from Ksh 103.13 yesterday while the local currency also appreciated 23 cents against the Sterling Pound to exchange at Ksh 130.36 up from Ksh 130.13 yesterday.
The Shilling’s strength is due to reduced demand for dollars and expectations that the Central Bank of Kenya will continue to reduce the circulation of Kenya Shillings, a news report by Reuters says.
It is expected that the CBK will continue to mop up the local currency even after cutting the CBR to 16.5 percent last week, the report adds, also saying that traders expect the shilling to trade between Ksh 83.50 and 84.50 for the rest of this week.
Regionally, the shilling strengthened 0.2 percent against the Uganda Shilling to exchange at 29.49 Ugandan shillings for one Kenya shilling up from 29.43 Kenya shillings to one Ugandan shilling yesterday. The local currency weakened 0.3 percent against the Tanzanian shilling, to exchange at 18.89 Tanzanian shillings for one Kenya shilling from 18.94 Tanzanian shillings yesterday.