RTRS:Kenyan shilling pulls back vs dollar, seen steady
NAIROBI, Aug 24 (Reuters) - The Kenyan shilling
weakened against the dollar on Friday as banks covered short
positions, traders said, with further mopping up of liquidity by
the central bank expected to offer support to the local currency
in coming days.
At 0659 GMT, commercial banks quoted the shilling at
84.00/20 per dollar, slightly weaker on Thursday's close of
83.90/84.10.
"There was a bit of interbank short covering early today,
but we expect the shilling to be steady since most clients have
already covered forwards," said a trader at a commercial bank in
Nairobi.
The central bank is still running tight monetary policy to
support the currency, making frequent interventions to absorb
liquidity via repurchase agreements (repos).
"The shilling has managed to maintain a great degree of
stability and should end month (dollar) demand fail to
materialise we expect the shilling to make some slight gains,"
Bank of Africa wrote to clients in a daily report on Friday.