RTRS:Kenyan shilling firms through 84.00 vs dollar
NAIROBI, Aug 7 (Reuters) - The Kenyan shilling firmed
through the psychological level of 84.00 per dollar on Tuesday,
helped by aid agencies and exporters selling greenbacks in the
absence of demand from importers.
At 0717 GMT, commercial banks quoted the shilling at
83.90/84.10 per dollar, stronger than Monday's close of
84.00/20, and showing signs of breaking out of a a 84.00-84.50
range in which it has been hemmed in for over four weeks.
"We've seen some inflows from development agencies and usual
exporters. There is also a slow down in demand (for dollars),"
said Dickson Magecha, a trader at Standard Chartered Bank.
"The support now is at 83.80, but if we break that we will
be in new territory."
The shilling has gained 1.4 percent against the dollar this
year, helped by the central bank keeping a tight rein on
monetary policy after sharp rises in interest rates last year to
prop up the currency and fight inflation.
Rising central bank foreign exchange reserves, which have
grown to above the statutory four months of import cover, have
also given the bank the muscle to intervene in markets when
necessary.