The Kenyan shilling is likely to range between 102.0 and 107.0 shillings against the US Dollar for 2018.
In a report released by Cytonn Investments, the shilling’s resilience against the Dollar is just short-lived and Kenyans should brace for it slipping back.
The Kenya Shilling appreciated by 1.0 percent against the USD during the month of January to close at 102.2 shillings from 103.2 shillings in December.
The shilling also closed the week at 101.7 shillings against the Dollar supported by horticulture export earnings.
On a year to date basis, the shilling appreciated against the dollar by 1.4 percent and according to Cytonn, the shilling should remain relatively stable against the dollar in the short term, supported by:
- The expected calm in the political front, following the conclusion of the presidential elections and the swearing in of the President,
- The weakening of the USD in the global markets, as indicated by the US Dollar Index, which has shed 9.9 percent in 2017 and 3.1 percent year to date
- The CBK’s activity, as they have sufficient forex reserves, currently at USD 7.1 billion.
Cytonn’s statement comes after Barclays Bank released another report indicating that the shilling will hit 106 shillings against the US Dollar.