NAIROBI, Jan. 22 (Xinhua) — The Kenya shilling firmed against the U.S. dollar on Monday as the market awaited the central bank’s decision on its benchmark rate.
The apex bank’s Monetary Policy Committee was expected to meet on Monday and set the lending rate, which analysts predicted would be retained at 10 percent.
The shilling traded at an average of 102.85 against the dollar, an increase from 102.90 in the previous session on Friday.
The East African nation’s commercial banks quoted the currency on Monday at between 102.70 and 102.90, an increase from 102.90 and 103.00 on Friday.
The central bank, on the other hand, placed the currency at a high of 102.87 during the session up from 102.89.
Forex traders noted the shilling had gained slightly as it awaited decision of the central bank committee on the key rate.
Against the British pound, the shilling weakened on Monday to trade at 142.69 from 141.92 on Friday. With the bank expected to hold the rate at 10 percent, analysts noted the currency would continue surging against the dollar in the short-term.
The shilling last week increased against the dollar by 0.2 percent to close at 102.90, boosted by rise in inflows especially at the debt market and the global decline in the value of the greenback.