Kenyan shilling stable, seen supported by high debt yields

by Reuters 13 views0

Kenyan shilling stable

Kenya’s shilling was little changed on Monday with foreign investor inflows, driven by high government debt yields, supporting the local currency.

At 0725 GMT, commercial banks quoted the shilling at 101.95/102.05 to the dollar, little changed from Friday’s close of 101.90/102.10.

The shilling has firmed in recent weeks due to inflows of dollars from offshore investors chasing government debt. Yields on the benchmark 91-day paper slipped at last week’s auction to 19.471 percent but remain far above normal levels.

“Based on current yields, the shilling should stay supported,” said one Nairobi-based trader.

Yields on the 182 and 364-day Treasury bills were above 21 percent at last week’s auction.