NAIROBI, Kenya, Jan 4 – The Kenya Shilling got off to a rocky start on the second day of trading in 2017 hitting the Sh103 mark against the dollar.
This shilling is currently trading at Sh103.25, the highest it has traded since the August 2015.
Commercial Bank of Africa treasury department attributes the move to positive sentiments for the dollar that has continued to drive the dollar higher globally.
“Dollar demand continue to outway foreign currency supply with the number of corporate and interbank players taking stock of the lucrative greenback,” the department states.
CBA treasury projects the dollar will continue to remain strong owing to the US Federal Reserve decision to increase interest rates to a minimum 0.5 per cent from 0.25 per cent.
“Treasury bills and bonds in the united states market are also going up from 1.25 per cent to 2.7 per cent making the dollar very attractive,” the department added.