Kenyan Shilling Gains Slightly by 0.5pc as Dollar depreciates

The Kenya Shilling appreciated against the USD by 0.5 percent during the week to close at Kshs 103.4 from 103.9 the previous week, as banks exit the short dollar positions they took against the shilling before elections.

On a year to date basis, the shilling has depreciated against the dollar by 0.9 percent.

The relative stability is because the dollar has also been depreciating against the other major currencies.

Against the Euro, Yen and the Pound, the shilling has lost 11.6 percent, 7.3 percent and 5.8 percent YTD, respectively.

The significant depreciation against the Euro, Yen and Pound is as a result of stronger economic fundamentals in the Eurozone, UK and Japan as compared to the US, that have pushed further the expected path for the US interest rate hike cycle.