Shilling remains bearish against dollar
Mar 06, 2011
THE local unit remained bearish against the greenback, closing 2375/80 compared to the previous close of 2352/57, dealers said on Friday.
By Vision Reporter
THE local unit remained bearish against the greenback, closing 2375/80 compared to the previous close of 2352/57, dealers said on Friday.
“The market continued to see more dollar buying interest with very little inflows, causing the drop in the shilling. The continued decline of coffee exports for the third month in a row has aggravated the situation.
“The cash markets remained fairly liquid with the Central Bank funding through reverse repos on a daily basis. The three-year bond on Thursday was well received with not much change on the yield,†Denis Mushabe, a forex trader at Standard Chartered Bank, explained last week.
“Next week (this week), we expect the shilling to keep weakening against the dollar though market will keep an eye on any action Central Bank might want to take as we approach a record low of 2400. 2360 provide the initial support for 2340 and 2395 remains key resistance for the top side,†he added.
THE local unit remained bearish against the greenback, closing 2375/80 compared to the previous close of 2352/57, dealers said on Friday.
“The market continued to see more dollar buying interest with very little inflows, causing the drop in the shilling. The continued decline of coffee exports for the third month in a row has aggravated the situation.
“The cash markets remained fairly liquid with the Central Bank funding through reverse repos on a daily basis. The three-year bond on Thursday was well received with not much change on the yield,†Denis Mushabe, a forex trader at Standard Chartered Bank, explained last week.
“Next week (this week), we expect the shilling to keep weakening against the dollar though market will keep an eye on any action Central Bank might want to take as we approach a record low of 2400. 2360 provide the initial support for 2340 and 2395 remains key resistance for the top side,†he added.