Kenyan shilling advances against dollar on high inflows

NAIROBI, Dec. 19 (Xinhua) -- The Kenya shilling on Tuesday advanced against the U.S. dollar after remaining flat for three sessions as inflows rose.

The East African nation's currency traded at an average of 103.15 against the greenback, a rise from 103.20 on Monday.

The Central Bank of Kenya (CBK) placed the shilling in the trading at 103.16, a positive development from 103.20 to the dollar in the previous session.

The country's commercial banks, on the other hand, quoted the shilling at between 103.05 and 103.25 to the dollar, the same level it closed on Monday.

Forex traders in the financial institutions attributed the strengthening of the shilling to growing inflows especially from remittances from Kenyans in diaspora and non-state organizations ahead of the Christmas holiday.

Against the British Pound, the shilling declined to close at 138.50 from 137.97, reversing a positive trend witnessed on Monday.

The Kenya shilling, according to analysts, is currently trading in a tight range as dollar demand from manufacturers and retailers surge ahead of the festive season.

However, according to Cytonn, a Nairobi-based investment firm, the shilling would remain stable supported by calm in the political front, the weakening of the dollar in the global markets and apex bank's intervention. Enditem