Shilling stays stable
Mar 05, 2006
THE shilling closed the week relatively stable against the dollar in the absence of corporate demand and banks squaring off positions, dealers said on Friday, writes <b>Sylvia Juuko. </b>
THE shilling closed the week relatively stable against the dollar in the absence of corporate demand and banks squaring off positions, dealers said on Friday, writes Sylvia Juuko.
The shilling traded at 1,820/1,830 per dollar virtually unmoved from last week’s close.
“Many banks were seen selling off dollars to avoid losses from long positions,†Joram Ssozi, the chief dealer at Standard Chartered Bank, said on Friday.
The shilling opened the week at 1,825/35 after recovering from election period, dealers said.
“The market experienced an appreciation at the beginning of the week since corporate demand was low after presidential elections, to levels of 1,815/25,†said Ssozi.
Market expectation is that the shilling will backtrack on its gains undermined by a surge in dollar demand as corporates settle dividend requirements this week.
“It is more likely to depreciate to 1,830/1,840 as corporates start full operations after the elections period,†said Ssozi.
Ends
The shilling traded at 1,820/1,830 per dollar virtually unmoved from last week’s close.
“Many banks were seen selling off dollars to avoid losses from long positions,†Joram Ssozi, the chief dealer at Standard Chartered Bank, said on Friday.
The shilling opened the week at 1,825/35 after recovering from election period, dealers said.
“The market experienced an appreciation at the beginning of the week since corporate demand was low after presidential elections, to levels of 1,815/25,†said Ssozi.
Market expectation is that the shilling will backtrack on its gains undermined by a surge in dollar demand as corporates settle dividend requirements this week.
“It is more likely to depreciate to 1,830/1,840 as corporates start full operations after the elections period,†said Ssozi.
Ends