Kenyan shilling drops after a significant gain against the U.S. dollar – This is the reason the shilling is weakening

Tuesday, April 4, 2024 - A month after making consecutive gains against the U.S. dollar, the Kenyan Shilling has started weakening.

Commercial banks on Monday quoted the shilling at 131.00/132.00 against the U.S. dollar, a drop compared to Friday, April 12 when it closed at 129.50/130.50.

The weakening of the Kenya shilling against the greenback is attributed to pressure on foreign currency demand from the fuel and manufacturing sectors.

The Shilling experienced pressure brought about by a high demand for the Dollar by the manufacturers who sought to purchase raw materials for their industries.

Due to a high demand for the Dollar by the manufacturers, more local currency was needed to buy the foreign currency to complete the trade.

Trade on the international front is normally carried out in dollars, and thus, traders seeking to complete their transactions must exchange their currencies for Dollars.

The Kenyan DAILY POST