This archive report was first published on 6 October 2019.
On October 6, 2019, the Kenyan shilling closed on a stronger footing against the US dollar, thanks to diaspora remittance inflows.
According to Reuters, a decrease in dollar demand from energy sector players contributed to the shilling's gain, as their trading activity tends to have a significant impact on the exchange rate.
Commercial banks quoted the shilling at an average of 103.80 in afternoon trading on Friday, having opened the week at an average of 103.89 units.
Commercial Bank of Africa noted in a market report that dollar supply met demand from the manufacturing sector, causing dollar buyers to retreat and tipping the scales in favor of the local unit.
As a result, the shilling closed on the front foot, albeit marginally.
Looking ahead, business people expect the shilling to continue trading in a tight range against the dollar, absent any market-shaking news.
The Central Bank's willingness to mop up liquidity also supports the stability of the shilling in case volatility starts to creep in.
