by Bedah Mengo
NAIROBI, Oct. 17 (Xinhua) -- The Kenya shilling weakened on Tuesday, pushed down by rising U.S. dollar demand by importers amid a cloud of political uncertainty.
The currency traded at a new low of 103.31 against the greenback.
The Central Bank of Kenya put the currency at 103.30 against the dollar, a low position than the previous day's 103.28.
Commercial banks, on the other hand, quoted the currency at an even lower position of between 103.35 and 103.45, down from 103.30-103.40 seen on Monday.
Traders in the financial institutions had on Monday warned that the currency would take a negative turn, affected by intense political activities in the country ahead of repeat presidential polls scheduled for Oct. 26, and rising dollar demand from importers.
Despite the fall, analysts expect the shilling to be supported by Central Bank activities in the foreign exchange market as foreign exchange reserves remained stable thanks to increased diaspora remittances and rising horticulture earnings.
