NAIROBI (Reuters) – Kenya’s central bank sold dollars in the foreign exchange market on Wednesday after the shilling weakened due to heavy importer demand from sectors like energy, traders said.
At 0723 GMT, commercial banks quoted the shilling at 103.10/20 to the dollar, compared with Tuesday’s close of 102.80/103.00. The shilling last traded at its present levels in mid-October 2015, when it hit a low of 103.50/60 on Oct. 13.
“Markets weakened and then we have seen central bank in the market. It has reduced the pace of the shilling’s depreciation. There is lots of demand,” said a senior trader at one commercial bank.
The central bank rarely comments on dollar sales.
(Reporting by George Obulutsa and Duncan Miriri)