Kenyan Shilling Furthers Losses Against US Dollar

The Kenyan shilling furthered losses against the US Dollar mid-week, down 0.03% on the day to 101.47; despite rate hike hopes ebbing. The greenback continued to be weighed down by weak U.S economic data, prompting investors to push back expectations on the timing of the next rate hike from the Federal Reserve; resulting in it hitting one-week lows against its own basket of currencies. Against the shilling the dollar begun to vigor sly rally after Friday’s U.S. job report, which exacerbated investors’ expectations, however we can expect some erosion on those gains.

The local currency also weakened against the Euro by 0.10% to close trading at 112.53, as mixed data emanated from the single-currency area. Most data was skewed adversely, with French industrial production (m-o-m) below expected and Italy’s referendum on a package of constitutional amendments that could lead to the prime minister’s resignation – if measures are defeated; thus widespread ramifications for policies in Europe. On the regional front, the shilling remained flat against the Ugandan shilling and rallied by 0.07% against the Tanzanian shilling.