Kenyan Shilling remains resilient against the Greenback as RUTO continues to do his magic

Tuesday, March 26, 2024 - The Kenyan shilling edged higher against the dollar in thin trade on Tuesday, London Stock Exchange Group (LSEG) data showed.

On Tuesday, the shilling was trading at 131.00/132.00 to the greenback, slightly firmer than its Monday’s close of 131.50/132.50.

The shilling is trading near a one-year high, up about 20% against the dollar in 2024, making it one of the world’s best-performing currencies this year.

The exemplary performance of the Kenya shilling has been attributed to the Sh  $1.5 billion Eurobond issuance that was met with strong demand from both foreign and domestic investors.

This was an important development in foreign exchange markets because traders – and the World Bank – had feared that Kenya could default on a debt repayment of $2 billion in June.

However, with this successful entry into international debt markets, this is unlikely now to happen, removing a major risk factor that had loomed over shilling markets.

Furthermore, the Kenyan government also received almost $2 billion in demand for a shilling-denominated bond of $500 million, which could suggest further capital inflows that would prop up the value of the shilling.

These two factors have improved sentiment in Kenyan forex markets and indicated that the currency could find more support on a technical level.


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