RTRS:Kenyan shilling slips vs dollar, rising shares offer support
NAIROBI (Reuters) - The Kenyan shilling slipped against the dollar on Tuesday, pressured by importers buying greenbacks to meet their end of month payments, but traders said foreign investors buying Kenyan shares could support the currency.
At 0711 GMT, commercial banks quoted the shilling at 84.25/45 per dollar, slightly weaker than Monday's close of 84.20/40.
"There is some end-month dollar demand in the market. But there are good flows from the agricultural sector and foreigners buying into the stock market," said Julius Kiriinya, a trader at African Banking Corporation.
Kenyan shares have risen nearly 20 percent this year to touch a new 2012 high of 3,844.61 points on Monday.
Traders said they expected the shilling to trade in the 84.00-84.50 range, supported by the liquidity mop ups.
"Orders (for dollars) from importers as we approach end-month might weigh on the shilling a bit, but central bank mopping-up might also support," said a trader at one commercial bank.
Recently the shilling has made moderate gains against the U.S. currency, up 1 percent year to date.