Abacus Wealth Management

Forex Trail – 5 June 2012

Below is a comparison of the performance of the Kenya Shilling over the last two trading days; Thursday 31st May and Monday 4th June 2012:

Currency US Dollars Euro Sterling Pounds SA Rand KES/USHS KES/TSHS KES/RWF
Date 31/05/2012 86.825 107.6096 134.5124 10.1415 28.6209 18.3128 6.9394
04/06/2012 86.1167 106.8906 132.3502 10.0089 29.1235 18.4519 6.9964

 

As we can observe, the Kenya Shilling strengthened against the US Dollar, the Euro, the Sterling Pound and the SA Rand. This positive performance is contrary to the declining we have observed since the beginning of May.

Today the Monetary Policy Committee (MPC) of the Central Bank of Kenya (CBK) is set to meet and decide on the level of the Central Bank Rate (CBR). The CBR is the cost at which commercial banks borrow from the CBK. It is suspected that the CBK will further maintain the CBR at 18% to stabilise the Kenya Shilling – US Dollar exchange rate.

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