Kenyan shilling firms vs dollar, eyes demand
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Kenyan shilling firms vs dollar, eyes demand UPDATED 28 Jul 2009 | 08:36  
Kenyan shilling firms vs dollar, eyes demand

NAIROBI (Reuters) - The Kenyan shilling firmed slightly against the dollar on Tuesday on lower demand for the U.S. currency as the central bank stayed away from the market.

At 0738 GMT, commercial banks posted the unit at 76.48/58 against the dollar compared with Monday's close of 76.60/70.

"The CBK (Central Bank of Kenya) is out of the market. We expect the shilling to consolidate its gains now," said Stephen Kimani, a trader at Co-operative Bank.

The central bank bought $10 million in the previous session in a continuation of its policy to boost the east African nation's foreign currency reserves to 3.6 months of import cover by the end of 2009.

Jackie Maina, an Equity Bank trader, said there was a bit of demand for dollars from importers. "There is some demand that has forestalled the (strengthening) move," she said.

Traders said the local currency could hover around the 76.80 level as that dollar appetite from importers seeking to fund their purchases picks up.

"We expect the oil importers to pick something (buy dollars) in the next two to three days," said Kimani.

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