BusinessPeople Daily

Shilling steady as dollar demand eases

The Kenya shilling was firm yesterday, exchanging at 103.65/85 per dollar, after experiencing excessive demand from energy and manufacturing products importers last week.

Analysts, though, predict that the shilling will slide to 107/110 per dollar during the year because of global concerns. Financial advisory firm Cytonn Investment said the US Fed rate hike is expected to strengthen the dollar in the international market and, together with increasing oil prices, will have a huge impact on the shilling.

Meanwhile, the value of the UK pound fell to a two-month low against major currencies after Prime Minister Theresa May signalled the UK would pursue a so-called “hard Brexit” from the EU.

Sterling fell about one per cent across the board. May told Sky News on Sunday that she wanted the best possible deal for leaving the EU, but she dismissed the idea that the UK could “keep bits of membership”.

“We’re leaving. We’re coming out. We’re not going to be a member of the EU any longer,” she said. Commentators interpreted this as meaning that May would not seek to keep the UK in the EU’s single market, with radical consequences for the country’s economy.

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