This archive report was first published on 15 July 2020.
On July 14, 2020, the Kenyan shilling hit a three-month low against the US dollar, mainly due to increased demand from importers.
The shilling closed the day at an average of 107.25 units against the dollar, compared to 107.15 units at the close of trading the previous day.
This marked the weakest level since April 4, 2020, when the shilling was at 107.27 units against the dollar.
According to Reuters, currency traders attributed the shilling's weakness to dollar demand from players in the energy sector and importers of merchandise.
As the government continues to relax measures to contain the spread of Covid-19, traders expect the gradual reopening of the economy to boost demand for commodities such as fuel and raw materials.
With the resumption of local air transport, inter-county road transport, and the Standard Gauge Railway, the demand for dollars is expected to increase.
