Kenya shilling flat, waning dollar appetite seen lending support

Wed Apr 30, 2014 4:46am EDT

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NAIROBI, April 30 (Reuters) - Kenya's shilling held steady on Wednesday and traders
said it was likely to firm against the dollar in the next few sessions due to an anticipated
fall in corporate appetite for greenbacks.
    By 0830 GMT, commercial banks posted the shilling at 86.80/87.00 per dollar, matching where
it closed on Tuesday. The currency of east Africa's biggest economy has been trading in a tight
band of 86.80-87.00 in recent days.
    "However, going forward as the demand settles out of the market, we project that the
shilling will recoup some of its losses and probably trade around the 86.50 to 86.80 range,"
said one senior trader with a leading commercial bank.
    The central bank's rate-setting committee meets later on Wednesday. All 10 of the analysts
polled by Reuters, before inflation figures were released at 0800 GMT, forecast rates would be
kept at 8.5 percent .
    Kenyan inflation inched higher to 6.41 percent in the year to April, but not
enough to change rate forecasts, analysts said. Even so, traders said a surprise
small cut would not impact the shilling.
    "It's a demand-driven currency. Because the central bank continues to mop up excess
liquidity, we don't foresee a case where a rate cut would impact the shilling negatively," said
the senior trader.
    The central bank said on Wednesday it was seeking to drain 10 billion shillings from the
money market - a stance it has taken this year to shore up the local currency.
    
               ...........................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
  SPEED GUIDES:
                                    
            
 

 (Reporting by Duncan Miriri; Editing by Richard Lough and Louise Ireland)
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