Shilling weakens on dollar demand from telecom

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The dollar shilling pair closed Wednesday’s trading session at 3700/3710, five shillings weaker than Tuesday’s close of 3695/3705. During the morning session, traders said dollar demand from the telecom and manufacturing sectors pushed the pair to the day’s highs of 3705/3710, which subsequently attracted profit‑taking sales from interbank players.

Money market conditions remained tight throughout Wednesday’s session, according to Absa report, with overnight and one‑week rates averaging 10.65% and 10.60%, respectively.

In the debt market, Wednesday's treasury bill auction saw yields on the 91‑day tenor cleared flat at 10.384%, while the 182‑day and 364‑day tenors eased to 11.041% and 12.002%, respectively. The central bank accepted a total of sh243b.