NAIROBI, Aug 20 (Reuters) - The Kenyan shilling
KES= firmed on Wednesday, buoyed by dollar inflows from the tea sector, but traders said the currency was more likely to weaken again in coming days. At 0730 GMT, commercial banks quoted the shilling at 88.20/88.35 to the dollar, slightly down from Tuesday's close of 88.35/88.45. "There are inflows from tea sector sales," said John Njenga, trader at Commercial Bank of Africa. Tea is one of Kenya's leading foreign currency earners and is sold at auction at the port city of Mombasa every Tuesday. Exporters typically convert their earnings into shillings to pay farmers and cover operational expenses. The shilling, down about 2.3 percent against the dollar this year, has been weakening over the past few weeks, even though liquidity has tightened. Traders say dollar inflows have been scant. The weighted average lending rate on the interbank market rose to 12.4918 percent on Tuesday from about 7.5 percent in mid-July, causing a mini liquidity crunch. "If that is tamed, we may see the shilling weakening further," added Njenga. Traders say they are also looking to see whether the central bank will intervene to prop up the local currency as it has done regularly over the past year.KES= KES1= ...........................Shilling spot ratesKESF= 0#KESF= .....................Shilling forward ratesEURKES= KESX= KESX1= .......................Cross ratesKES=KE ..................................Local contributorsCBKINDEX .......................Central Bank of Kenya IndexKE/DEBT .....................Kenyan Bonds contributor pagesCBK03 CBK06 KE3MTB= ...............Treasury bill yieldsCBK04 ..................Central bank open market operationsCBK07 .........................Horizontal repo transactionsKEIBR= ,CBK02 ................Daily interbank lending rate0#KETSYSTR= .............................Kenya Bond pricingECONAFRICA ..................Real time Africa economic data <ECI & AFR> ...........................African economic news.NSE20 .................................NSE-20 Share Index.NASI .................................NSE All Share Index.FTFNKEN1 ...........................FT NSE Kenya 15 Index.FTFNKEN2 .......................... FT NSE Kenya 25 Index SPEED GUIDES:REUTERS KES/1 KE/DEBT MONEY KE/EQUITY (Reporting by Drazen Jorgic; Editing by Susan Fenton) ((james.macharia@thomsonreuters.com; Tel: +254 204 991 232 ; Reuters Messaging: james.macharia.thomsonreuters@reuters.net)) Keywords: KENYA MARKETS
Kenyan shilling firms against dollar, gains may be short-lived
NAIROBI, Aug 20 (Reuters) - The Kenyan shilling KES= firmed on Wednesday, buoyed by dollar inflows from the tea sector, but traders said the currency was more likely to weaken again in coming days. At 0730 GMT, commercial banks quoted the shilling at 88.20/88.35 to the dollar, slightly down from Tuesday&aposs close of 88.35/88.45. "There are inflows from tea sector sales," sai
August 20, 2014




















