NAIROBI, July 18 (Xinhua) -- The Kenya shilling was steady against the U.S. dollar on Tuesday following support from the central bank amid rising inflows.
The local unit traded at an average of 103.90, largely the same level it was at the start of the week on Monday.
The apex bank during the Tuesday trading session quoted the shilling at 103.91, nearly the same level the local unit was on Monday.
On the other hand, commercial banks placed the value of the Kenya shilling at between 103.90 and 104.05 as traders noted a surge in inflows, especially from investors seeking to buy Treasury bonds.
Analysts attributed the firmness of the shilling mainly to intervention from the Central Bank of Kenya (CBK).
CBK Governor Patrick Njoroge in a press conference in the capital Nairobi said Kenya's foreign exchange reserves currently standing at 7.8 billion dollars, an equivalent of 4.63 months of import cover, were adequate to cushion the shilling.
Njoroge blamed the turbulence the shilling is currently facing to intense speculation ahead of the general election.
However, with the support from the central bank, analysts noted that the shilling is set to stabilize in the coming days.
The apex bank is also expected not to allow the currency to fall below a level that would destabilize the market. Enditem
