Kenya’s shilling traded flat against the US dollar on Friday, holding at 129.50/129.70 levels according to London Stock Exchange Group data.
Forex traders cited increased dollar demand from oil and manufacturing importers as the main pressure. The shilling has struggled to gain ground despite improved remittance inflows from Kenyans abroad.
The Central Bank of Kenya kept its benchmark rate at 12.75% in its last meeting, aiming to curb inflation and stabilize the currency. Inflation stood at 4.6% in April, within CBK’s target band.
Analysts say the shilling will likely remain range-bound until dollar inflows from tea and horticulture exports pick up later this quarter. Kenya relies heavily on USD for fuel imports, making the exchange rate a key cost driver.
The flat performance comes as the government negotiates new budget support with the IMF.
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