NAIROBI, (Xinhua) --
The Kenyan shilling on Tuesday fell to a
six-month low as it crossed below the 104 mark against the U.S.
The currency stood
at an average of 104.05 pulled down by increased demand of
dollars from various retail importers, among them those bringing
in food and oil.
The Central Bank of
Kenya quoted the value of the shilling at 104, placing it at a
stronger position than what commercial banks did.
institutions, on the other hand, placed the shilling at between
104.05 and 104.10 down from 104 in the previous session, with
traders in the banks noting there was a huge dollar demand from
multinational paying dividends and retail importers.
On Monday, the
shilling remained flat against the dollar, with analysts noting
the Central Bank had sold unspecified amount of dollars in its
foreign exchange reserves to buttress the currency.
The apex bank was
expected to use its foreign reserves to continue supporting the
shilling Tuesday, but the fall signals a huge dollar demand that
cancelled the move.
At the end of last
week, the Central Bank’s dollar reserves stood at 7.92 billion
dollars or 5.23 months of import cover down from 7.96 billion
dollars or 5.26 months of import cover.
to Cytonn, a Nairobi-based investment firm, the shilling would
stabilize due to Kenya’s strong forex reserves position.