Kenyan shilling gains against USD, weakens further against GBP

Kenya shilling gained marginally against the U.S. dollar on Friday following a rise in remittances from the Diaspora amid decline in dollar demand from importers.

The currency rose 0.01 percent to stand at 103.4 to the dollar, according to the Central Bank of Kenya, up from 103.43 Thursday.

On Wednesday, the local unit rose by a similar margin to close the day at 103.41, reversing a negative trend witnessed on Monday and Tuesday.

Analysts attributed the current strengthening to increased remittances from Kenyans abroad, thus helping to offset dollar demands from retail importers

However, as the shilling strengthened against the dollar, it weakened further against the British Pound.

Friday, the apex bank quoted the shilling at 132.63 against the Pound, a further deceleration from the previous day, where it stood at 132.62 after going down 0.73 percent.

On Wednesday, the local currency declined by 1.72 percent to close at 131.66 against the Pound. On Tuesday, the shilling stood against the Pound at 129.42.

Cytonn, a Nairobi-based investment firm, noted that even as the shilling strengthens against the dollar, it is not out of the woods and would continue to come under pressure due to the global strengthening of the dollar ahead of a planned rate hikes in the course of the year. Endit