Kenyan shilling rallies against dollar to two-year high

NAIROBI, April 17 (Xinhua) -- The Kenyan shilling on Tuesday strengthened against the U.S. dollar to hit a two-year high, boosted by high inflows and a positive political environment.

The shilling has been on a rally against the dollar in the last month, following a truce between President Uhuru Kenyatta and opposition leader Raila Odinga, his main rival in last year's presidential elections.

The local currency was traded on Tuesday at an average of 100.40 against the greenback, a significant surge from an average of 100.75 at the end of Monday.

Commercial banks in the east African nation quoted the currency at a high of 100.40, up from 100.55-100.75 of Monday.

The Central Bank of Kenya, however, placed the shilling at a lower level of 100.63 on Tuesday, but the rate was still a major leap from Monday's 100.77.

Forex traders attributed the rally of the shilling to sustained growth of inflows from various sectors, including the diaspora, horticulture, and investors on the debt market, amid a stable political environment.

The inflows have helped keep foreign reserves higher at 8.8 billion dollars, or 5.9 months of import cover.

Against the British pound, the shilling fell to 144.01, down from 143.71 of Monday. Enditem