Kenya shilling rises to three-month high

NAIROBI, Dec. 5 (Xinhua) -- The Kenya shilling strengthened on Wednesday against the U.S. dollar to close the day at a three-month high.

The shilling traded at an average of 102.95 to the dollar, a rise from 103.05 in the previous session following increased inflows, especially at the debt market, on positive political environment.

The Central Bank of Kenya placed the local unit in the Wednesday trading at 102.98, a 0.08 percent rise from previous session's 103.06.

The East African nation's commercial banks, on the other hand, quoted the currency at an even stronger position of between 102.75 and 102.95 from Tuesday's margins of 103.05 and 103.15.

Traders in the financial institutions attributed the rise of the currency, last seen at the level in mid-September, to three things.

First is the increased dollar inflows at the debt market, second was due to banks cutting down on their dollar reserves following the conclusion of the elections and lastly the stable political climate.

Importers had on Tuesday increased demand for dollars but this was checked by the rising inflows at the debt and stock markets.

To the British pound, the shilling similarly gained by 0.83 percent to close at 138.23 from 138.86 in the previous session. Enditem