NAIROBI (Xinhua) --
The Kenya shilling strengthened further against
the U.S. dollar on Thursday following increased inflows from
foreign investors seeking to trade in government securities.
The Central Bank of
Kenya quoted the local unit Thursday morning at 102.5 against
dollar from 102.6 the previous day.
banks placed the value of the shilling against the dollar even
higher at an average of 102.4 as they attributed the surge to
increased foreign investors’ inflows amid low dollar demand from
On Wednesday, the
Kenyan currency gained 0.02 percent against the dollar as it
sustained gains from the previous days, where it had risen 0.22
percent on Monday and 0.01 percent Tuesday.
Last month, the
Kenya shilling appreciated against the dollar by 1 percent to
close at 102.9, from 103.9 in January. The strengthening of the
shilling during the month was primarily driven by dollar inflows
from offshore institutional investors and horticultural produce
exporters, according to Nairobi-based investment firm Cytonn.
However, on a
year-to-date basis, the shilling has depreciated against the
dollar by 0.2 percent. Besides inflows from foreign investors
and horticulture, the currency has also received key support in
recent weeks from higher diaspora remittances.
warn that rising food prices which have pushed up inflation,
surging oil prices and an ongoing drought may erode the
shillings gains in coming weeks.