Daily Market Update

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MARKET UPDATE FOR 23th October 2020

LOCAL MARKET

USD/KES

The Kenya shilling was little changed on Thursday, but is expected to weaken due to increased early end month dollar demand from the energy sector and merchandise importers. Expected trading range today is 108.50 – 111.30.

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 108.85 111.15
GBP 1.2907 1.3310 140.49 147.94
EUR 1.1651 1.1955 126.82 132.88
JPY 103.21 106.22 1.0248 1.0769
ZAR 14.753 17.763 6.13 7.53
CHF 0.9022 0.9126 119.27 123.20
CAD 1.3100 1.3201 82.46 84.85
KES/UGX 3680 3780 33.11 34.73
KES/TZS 2264 2374 20.37 21.81

MONEY MARKET

CBK analysis on Thursday showed a square market. The regulator was thus out of the market in order to remain within the set monetary policy path by the MPC.

LOCAL MONEY MARKET
TREASURY BILLS AND BONDS (MIO KES)
Tenor 91-day 182-day 364-day
Amount Offered 4,000.00 10,000.00 10,000.00
Bids Received 4,135.76 7,227.81 8,173.50
Amount Accepted 4,134.78 6,744.88 8,140.63
Current Rate 6.589% 6.967% 7.840%
Previous Rate 6.520% 6.909% 7.800%

GLOBAL MARKETS

The dollar was up in early trade as investors began to wager on a Biden presidency and a big U.S. stimulus even as the U.S. President Donald Trump and Joe Biden participated in a restrained final presidential debate before the Nov. 3 presidential election earlier.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.08% to 93.043. The Euro has gained 0.8% to trade at $1.1800, though pulled back overnight as COVID-19 cases surge in Europe

The Pound edged down 0.15% to $1.3055 over the Brexit uncertainty, with investors monitoring the intensified talks between the U.K. and European Union as a last-ditch effort to reach a deal.

The United Kingdom, United States and Europe will release Purchasing Managers’ Index (PMI) figures due later in the day, with investors gauging the economic damage as all battle a second wave of COVID-19 cases.

Source:Reuters

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 4.20%
KES CBR 7.00%
GBP BOE RATE 0.10%
EUR ECB RATE -0.50%
USD FED RATE 0.25%
$ LIBOR 6 & 12 Month 0.24600/0.33488
£ LIBOR 6 & 12 Month 0.06825/0.12188
€ LIBOR 6 & 12 Month -0.50543/-0.45943

 

For firm quotes and more information on other treasury products kindly contact our treasury team. Treasury team: Sylvia Mwangi, Benson Wainaina, Alfred Too, Kenneth Mulandi, Lorna Kageni, Martin Githinji and Ndanu Musyoka
Telephone Contacts: 020 3275 XXX; EXT.244/221/185/550/378/257/558/180
Mobile Lines: 0703 058 XXX; EXT.244/221/185/550/378/257/558/180
Email: dealing@boakenya.com

Disclaimer
Whilst every care has been taken in compiling this market update, the Bank will not be responsible for and shall be exempt from all liabilities in respect of any loss of any kind whatsoever, incurred by any persons as a consequence of relying on the above information or otherwise.

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