The Kenyan shilling hit a 34-month high on April 24 by reaching a mean of 99.9778 units to the dollar whose supply has recently increased.
According to data from the Central Bank of Kenya (CBK), the shilling traded at 99.85 buying and 100.1056 selling. In its weekly bulletin, CBK said foreign exchange has been coming in from the agricultural sector and from foreign investors.
Market watchers believe that the Kenyan shilling will continue to strengthen thanks to the increased supply of the greenback.
“Further appreciation of the home unit seems plausible in the interim as [the] market continues to witness a demand-supply mismatch,” the Commercial Bank of Africa (CBA) said in a market report.
CBA said the shilling was on a winning run as earlier predicted by bankers. The currency’s momentum was observed late last week and has maintained the pace into this week. Furthermore, CBA noted the shilling’s buying price in the actual intra-day trading on Monday dropped as low as 99.20 units while the selling price stood at 100.70 units.
“Key counters were muted in early trading with the pair holding around 99.20-100.70 level. A slight uptick in foreign currency supply in the afternoon period saw the local unit pluck some 10 cents off the USD-KES currency pair,” CBA stated.