Kenya shilling firm, bond inflows match corporate dollar demand

NAIROBI (Reuters) – Kenya’s shilling was steady in early business on Wednesday, with usual end-month demand for dollars matched by inflows of foreign exchange from investors attracted by a government bond auction.

By 0733 GMT, the shilling was quoted at 91.75/95, little changed from Tuesday’s close of 91.70/80.

“It looks like the flows that were expected for the upcoming infrastructure bond have been supporting the local currency,” said Duncan Kinuthia, head of trading at Commercial Bank of Africa.

A bond worth 25 billion shillings ($272 million) will be auctioned on Wednesday. Traders said it was drawing offshore interest.

Traders said corporate demand for dollars was picking up as usual towards the end of the month, when companies meet regular payments. They said amounts sought were in the normal range.

Kinuthia said he expected the shilling to stay in a recent range of 91.50 to 92.30 in the days ahead, while another trader cited a slightly narrower range of 91.60 to 92.10.