The Kenya shilling lost ground against the U.S. dollar on Thursday albeit marginally even as forex traders noted stifled demand for the greenback.
The local currency traded at an average of 103.15 to the dollar down from 103.10 on Wednesday, a continuation of a downward trend.
The Central Bank of Kenya, however, quoted the shilling in the trading at 103.16 to the dollar, a 0.06 percent decline from Wednesday’s level of 103.11.
On the other hand, commercial banks in the East African nation put the currency at between 103.05 and 103.15, a minimal change from Wednesday’s margins.
Currency traders in the financial institutions noted that demand for dollar especially from oil importers had slowed down.
Against the British pound, the shilling strengthened by a large margin of 0.16 percent to close at 137.68 from 137.89 continuing with a positive trend since the start of the week.
Kenya’s forex reserves currently stand at 7.1 billion dollars, an equivalent to 4.8 months of import cover, according to the apex bank.
The reserves are sufficient for the bank’s intervention activities in case the currency faces pressure from international currencies. Enditem