CBK data shows the shilling held steady against the dollar, while the pound and euro became more expensive.
The Kenyan shilling held at Ksh129.96 against the US dollar in the week ending November 6. However, it lost ground against the British pound and euro, Central Bank of Kenya data shows.
The dollar rate matched the previous Friday’s level, leaving the local currency Ksh0.04 below the Ksh130 mark. Meanwhile, traders expected the shilling to remain stable against the US currency.
Kenyan shilling loses ground against European currencies
The British pound rose to Ksh175.18 from Ksh173.04 in the week ending October 29. That represented a weekly increase of Ksh2.14, making the pound more expensive for buyers using shillings.
The euro also strengthened, reaching Ksh146.27 compared with Ksh144.78 previously. Its Ksh1.49 gain similarly increased the amount of local currency needed to buy each euro.
By contrast, commercial banks’ dollar quotations showed only small changes on Friday. Banks quoted rates between Ksh129.85 and Ksh130.05, compared with Ksh129.90 to Ksh130.00 at the previous Thursday’s close. Those quotations extended slightly further on either side of Ksh130 than the previous day’s range.
Dollar strengthens globally as investors seek safety
Globally, the dollar gained on Friday as investors sought safer assets following a technology-led equity market sell-off. The US Dollar Index rose 0.4 per cent to slightly above 102 points, its highest level that week.
The index tracks the dollar against a basket of major currencies. Investors also awaited US non-farm payrolls data for fresh signals about the strength of the American labour market.
The CBK bulletin noted that the Bank of England had raised its policy rate by 0.25 percentage points to 4 per cent. Meanwhile, Kenya’s foreign exchange reserves stood at USD14.699 billion, equivalent to Ksh1.91 trillion, as of November 5.
