Shilling eases
Apr 29, 2007
THE shilling eased against the dollar during the week as inter-bank and corporate demand for the US dollar outweighed end-month inflows from agencies, dealers said on Friday.
By Sylvia Juuko
THE shilling eased against the dollar during the week as inter-bank and corporate demand for the US dollar outweighed end-month inflows from agencies, dealers said on Friday.
The local unit closed last week’s trading at 1,725/1,735 to the dollar compared with 1,712/1,717 the previous week.
“The shilling edged up against the dollar on Thursday on the back of heavy inter-bank activity, inflows from offshore traders and subdued corporate demand. The unit appreciated from the opening levels of 1,730 bid and 1,745 offer to close the day at 1,720 bid and 1,735 offer,†said a market report from Stanbic Bank.
Market sentiment is mixed with some dealers predicting the local unit will shed some of its gains, while others say it will gain due to inflows for the Treasury Bond auction slated for this week.
“We expect the local unit to lose provisionally though it will face a lot of resistance at 1,740 levels early in the week. However, it will recover to trade within 1,710 levels,†said Denis Mushabe Mashanyu, a spot trader at Standard Chartered Bank.
THE shilling eased against the dollar during the week as inter-bank and corporate demand for the US dollar outweighed end-month inflows from agencies, dealers said on Friday.
The local unit closed last week’s trading at 1,725/1,735 to the dollar compared with 1,712/1,717 the previous week.
“The shilling edged up against the dollar on Thursday on the back of heavy inter-bank activity, inflows from offshore traders and subdued corporate demand. The unit appreciated from the opening levels of 1,730 bid and 1,745 offer to close the day at 1,720 bid and 1,735 offer,†said a market report from Stanbic Bank.
Market sentiment is mixed with some dealers predicting the local unit will shed some of its gains, while others say it will gain due to inflows for the Treasury Bond auction slated for this week.
“We expect the local unit to lose provisionally though it will face a lot of resistance at 1,740 levels early in the week. However, it will recover to trade within 1,710 levels,†said Denis Mushabe Mashanyu, a spot trader at Standard Chartered Bank.