The local currency traded unchanged, underpinned by seasonal month end flows that improved supply conditions amid sluggish demand. The currency held in the range of 3530/40.
In the regional markets, Kenya shilling was stable, but expected to weaken due to increased demand from importers. In addition, the rising COVID-19 cases have heightened fears of more restrictions on economic activity which could pile pressure on the currency. Commercial banks quoted the shilling at 109.65/75.
In the global markets, the US dollar traded flat as oil prices slowed after a big advance while US Treasury yields moved higher as markets awaited clues on tapering of economic stimulus by the Federal Reserve at Jackson Hole symposium.
Outlook, indicate a broadly stable shilling as effects of the COVID-19 pandemic continue to cause a depressing effect on the markets.
August 20 – August 27, 2021: Weekly financial markets review and outlook with Stephen Kaboyo
Stephen Kaboyo, Founder and Managing Director Alpha Capital Partners
