NAIROBI, Aug. 15 (Xinhua) -- The Kenya shilling gained more ground against the U.S. dollar on Tuesday boosted by a positive post-election environment amid low demand of dollars from importers.
The local unit traded at an average of 103.70 against the dollar, a strong position from 103.87 registered Monday.
The Central Bank of Kenya quoted the shilling Tuesday at 103.76 against the dollar up from 103.87 in the previous trading session.
Commercial banks, on the other hand, put the value of the Kenyan currency at a stronger position of between 103.60 and 103.80 against the dollar, as traders cited decline in dollar demand from oil importers.
Against the British Pound, the shilling also strengthened trading at 134.59 from Monday's 134.84, an increase that similarly showed renewed confidence in the country after the polls.
The shilling has stabilized against the dollar and now the Pound but depreciated significantly against the Euro and Yen because the two currencies have appreciated against the dollar as a result of weakening economic fundamentals in the United States compared to the Eurozone and Japan, according to Cytonn, a Nairobi-based investment firm.
Kenya forex reserves fell to 7.4 billion dollars, an equivalent of 4.9 months of import cover, last week, down from 7.5 billion dollars or 5 months of import cover.
Analysts, however, noted the reserves are enough to cushion the shilling in case it faces pressure.
