Kenyan shilling steady, support seen from farm sector dollar sales

Wed Mar 12, 2014 4:57am EDT

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NAIROBI, March 12 (Reuters) - The Kenyan shilling was
steady on Wednesday with dealers expecting pressure from
manufacturers' dollar demand while inflows from the agriculture
sector were seen offering support. 
    At 0746 GMT, commercial banks quoted the shilling at
86.45/65 per dollar, compared with Tuesday's close of 86.30/40.
    Traders said if the central bank (CBK) mopped up excess
liquidity, as it has done since last week, making it expensive
to hold long dollar positions, the shilling would strengthen. 
    "We are seeing demand from manufacturing. I think it should
pick up from next week," Andlip Nazir, senior trader at I&M
Bank, said.
    "We'll wait for CBK action. If they are in the market to mop
up, then we'll see the shilling strengthening a bit."
    Agriculture sector dollar sales were also expected to boost
the currency of east Africa's biggest economy.  
     "We anticipate the shilling to remain well supported as
inflows from the farm sector continue to trickle in to the
market," Commercial Bank of Africa said in its daily report. 
    The shilling, which has gained 0.2 percent versus the dollar
so far this year, is expected to trade in the 85.90 to 86.90
range in coming days.
               ...........................Shilling spot rates
                  .....................Shilling forward rates
                           .......................Cross rates
         ..................................Local contributors
           .......................Central Bank of Kenya Index
          .....................Kenyan Bonds contributor pages
                          ...............Treasury bill yields
        ..................Central bank open market operations
        .........................Horizontal repo transactions
         ,       ................Daily interbank lending rate
              .............................Kenya Bond pricing
             ..................Real time Africa economic data
 <ECI & AFR> ...........................African economic news
          .................................NSE-20 Share Index
         .................................NSE All Share Index
             ...........................FT NSE Kenya 15 Index
             .......................... FT NSE Kenya 25 Index
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