(Xinhua) -- The Kenya shilling declined Tuesday, the
first day of trading this year, as demand for U.S. dollars after
the New Year festivities rose.
The shilling traded at an average of
103.30, a drop from 103.25 where it stood on Friday, the last
day of trading in 2017.
Central Bank of Kenya (CBK) on Tuesday
placed the local currency at 103.29 per dollar, a fall from
103.23 at the end of last week.
Commercial banks in the East African
nation, on the other hand, quoted the currency at between 103.20
and 103.40 down from Friday’s margins of 103.20 and 103.30.
Currency traders in the financial
institutions noted there was high demand of the dollar from
various sectors following the holiday, with huge need for
dollars coming from oil importers.
Similarly, against the British Pound,
the local unit declined to 139.65 on Tuesday from 138.75 last
Friday, with the currency sustaining a downward trend.
The shilling remained resilient in
2017, depreciating by 0.7 percent against the dollar during the
year to close at 103.2 from 102.5 at the beginning of the year,
according to investment firm Cytonn.
It was partly supported by the
weakening of the dollar in the global markets as indicated by
the U.S. dollar Index, which shed 9.9 percent in 2017.