The shilling was steady in early trade yesterday and traders said they expected it to weaken due to rising demand for US dollars, especially from oil companies, and due to a generally stronger US currency on global markets.
At 10.33am, commercial banks quoted the shilling at 103.85/95 to the dollar, the same as Tuesday’s close.
The shilling, just like other currencies, has been under pressure since the election of Donald Trump to the White House on November 8.
The Kenyan currency has since depreciated 2.08 per cent against the greenback, from 101.72 indicative level to 103.84 through yesterday morning.
“Whereas the Central Bank’s foreign exchange reserves and import cover are relatively robust, at 4.6 months (against the prescribed 4.3 months), we anticipate general weakness of the local unit in Q1 and Q2 2017 ahead of the general election,” StratLink analysts say.
