The Kenyan shilling has rejuvenated to gain traction against the US dollar as festive season kicks in, giving hope of it closing the year on the ‘safe side.’
On Wednesday, the local currency was at a five-week high against the dollar in what analysts attributed to the reduced dollar demand and the tight liquidity in the money market.
By the close of business on Wednesday, the shilling was quoted by traders at 102.07 shillings against the dollar compared to 102.38 and 102.50 shillings to the dollar on Tuesday and Monday respectively.
Kenyans living abroad have also increased their remittances into the country as it has always been during December seasons providing a major shield to the shilling.
The period between January and October saw remittances from the diaspora go up by 42 percent to 228 billion shillings from 160.3 billion shillings recorded during the same period in 2017.
The interbank rate has been rising, hitting a three-year high of 11.3 percent last Friday.