NAIROBI (Xinhua) --
The Kenyan shilling lost ground against the U.S.
dollar on Wednesday weighed down by high demand for the
greenback and increased liquidity in the market.
The shilling traded
against the dollar at an average of 100.50, a major decline from
100.25 in the Tuesday session.
The Central Bank of
Kenya quoted the shilling at 100.47 to the dollar, a significant
drop from 100.29 on Tuesday.
The East African
nation’s commercial banks put the shilling at an even lower
position of between 100.50 and 100.70 from 100.25 and 100.45
from previous period.
attributed the decline to low inflows amid rising dollar demand
as liquidity of the shilling increased in the Kenyan market.
Against the British
Pound, the shilling strengthened further to close at 135.70 from
135.86 in the previous session.
Analysts expect the
shilling to weaken in the short-term against the dollar until
the Central Bank mops the excess liquidity in the market through
sale of government securities.