High dollar demand pushes Kenya shilling further down

NAIROBI, Jan. 4 (Xinhua) -- A fast rise in demand for U.S. dollars by importers exerted pressure on the Kenya shilling on Thursday, pushing it further down.

The East African nation's currency traded at an average of 103.45 to the dollar down from Wednesday's level of 103.40.

The Central Bank of Kenya (CBK) placed the shilling at 103.44 per dollar, a drop from 103.35 in the Wednesday trading.

Commercial banks, on the other hand, quoted the Kenya shilling at between 103.30 and 103.50, with the margins remaining largely unchanged in Thursday's session.

Currency traders credited the drop of the shilling to faster rise in dollar demand from oil and other importers like manufacturers.

Inflows on the other hand remained low. Similarly, against the British Pound, the shilling declined marginally to trade at 140.19 from 140.09 on Wednesday.

Analysts expected the demand for dollars to stabilize in the coming weeks, offering relief to the shilling, which in turn would remain steady.

However, if the decline is sustained, the CBK is expected to intervene by selling part of dollars in its 7.1 billion dollars reserve. Enditem