Kenya central bank intervenes to support shilling, Uganda unit stable

NAIROBI/kampala – Kenya’s central bank sold dollars to banks early on Tuesday, helping to keep the shilling stable, after it weakened late in the previous session on concerns about an August 8 national election, forex traders said.

NAIROBI/kampala – Kenya’s central bank sold dollars to banks early on Tuesday, helping to keep the shilling stable, after it weakened late in the previous session on concerns about an August 8 national election, forex traders said.

They said the central bank had also pumped in dollars late in the previous session after the shilling weakened to touch 104.05 per dollar. The pressure followed news of the torture and murder of a senior election official.

The shilling was trading at 103.80/104.00 in early morning trading yesterday, unchanged from where it closed on Monday, following the initial sale of dollars by the regulator.

Meanwhile, the Ugandan shilling was unchanged yesterday, but demand from large importers in the manufacturing and energy sectors was expected to keep the local currency inclined towards the weaker side. Commercial banks quoted the shilling at 3,605/3,615, the same as Monday’s close.

Agencies.

 

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