Kenya shilling falls slightly as dollar demand rises

NAIROBI, Dec. 27 (Xinhua) -- The Kenya shilling declined slightly against the U.S. dollar on Wednesday amid rise in dollar demand after markets resumed following Christmas break on Monday and Tuesday.

The shilling traded at an average of 103.05 to the greenback, down from a strong position of 103.00 at the end of Friday last week.

The Central Bank of Kenya quoted the local currency at 103.08 per dollar, a level the local shilling ended in the Friday trading session.

However, commercial banks placed the shilling in the Wednesday trading at between 103.00 and 103.10, a drop from Friday's margins of 102.95 and 103.05.

Forex traders in the financial institutions blamed the decline of the currency on increased demand for dollars from retail importers, especially those importing oil.

Against the British pound, the shilling declined to close at 137.93 from 137.68, continuing a downward trend from the previous session.

The shilling appreciated marginally by 0.1 percent against the dollar last week to close at 103.1 from 103.2 as remittances exceeded demand from oil importers. Analysts expect the shilling to be stable in the short-term. Enditem