NAIROBI, (Xinhua) --
The Kenyan shilling weakened further against the
U.S. dollar on Thursday as demand for dollars by retail
The shilling traded
at an average of 103.15 to the greenback, down from a higher
position of 103.05 on Wednesday.
The Central Bank of
Kenya (CBK) quoted the local currency at the 103.15 position to
the dollar, a decline from Wednesday’s level of 103.08.
Commercial banks, on
the other hand, noted the local currency had traded in the
Thursday session at between 103.10 and 103.20 from 103.00 and
Currency traders in
the financial institutions attributed the drop to rising dollar
demand from retail importers especially those trading in oil
amid low inflows.
Against the British
pound, the shilling similarly declined to close at 138.47 from
137.93, continuing a steady decline.
Despite the decline,
analysts expect the shilling to remain stable in the short-term
especially due to CBK’s intervention activities, as the
institution has sufficient forex reserves, currently standing at
7.1 billion dollars, an equivalent to 4.8 months of import