Rise in inflows lifts Kenyan shilling against U.S. dollar

NAIROBI, May 21 (Xinhua) -- The Kenyan shilling notched up against the U.S. dollar on Monday, with forex traders and commercial banks attributing the rise to rising inflows.

The shilling traded to the dollar at an average of 100.35, up from 100.40 of last Friday.

Commercial banks quoted the currency at between 100.30 and 100.50, with the margins rising from 100.40 and 100.60.

However, the Central Bank of Kenya placed the shilling at a lower position of 100.54 per dollar in Monday's session.

Forex traders noted an increase in inflows from Kenyans overseas in the form of remittances and from the agriculture sector, which helped prop up the shilling.

Against the British pound, the shilling similarly strengthened to end Monday at 135.49, up from 135.60.

Analysts at the Nairobi-based investment firm Cytonn expect the shilling to remain relatively stable against the dollar in the short term, supported by stronger horticulture export inflows driven by increasing production and improving global prices, and growing diaspora remittances. Enditem