The Kenyan shilling rose to its highest level against the dollar in more than five months on Friday after hard currency inflows caused banks to reduce their dollar holdings, traders said.
The shilling hit an intra-day high of 102.65/75 per dollar in the first couple of hours of trading, a level it last traded at on March 27, Reuters data showed. It had closed Thursday’s session at 103.10/20.
Kenyan assets, including the shilling, were pummeled last week after the Supreme Court invalidated the re-election of President Uhuru Kenyatta and ordered a re-run.
The shares have since started to recover, with the blue chip index on the Nairobi bourse finishing higher in the last two sessions after steep losses following the ruling.
Currency traders said it was not clear where the dollar inflows which triggered the cutting of dollar positions were headed.
“People are trimming their dollar positions,” said a currency trader at a commercial bank.
Reporting by Duncan Miriri; Editing by Matthew Mpoke Bigg
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.