MARKET UPDATE FOR 24th June 2021
The Kenyan shilling held steady on Monday but it was likely to remain under pressure from strong demand for dollars from grain, oil importers and manufacturers.
Expected range today is 115.60 – 124.70.
|INDICATIVE FOREX RATES|
|CROSS RATES||AGAINST KES|
CBK analysis on Tuesday showed a square market. The regulator therefore remained out of the market in order to remain within the monetary policy path set by the
|LOCAL MONEY MARKET|
|TREASURY BILLS AND BONDS (MIO KES)|
The dollar was up on Wednesday morning in Asia. Investors now await cues on monetary policies from the Fed Chair’s testimonies to the Congress. Investors expect
the Fed to retain an aggressive tightening stance. The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.15%
The Euro holds lower grounds near $1.0510, after refreshing the daily low near $1.0500, on the back of the broad dollar rebound. In doing so, the major currency
pair awaits comments from the ECB and Fed policymakers while justifying the risk-aversion wave amid early Wednesday morning in Europe. The quote’s latest
weakness could be linked to the broad US dollar rebound.
The Sterling fails to stay on the bull’s radar, retreating to $1.2250 during the mid-Asian session on Wednesday. The cable’s latest weakness could be linked to the
market’s risk-off mood, as well as anxiety ahead of the key UK CPI and Jerome Powell’s Testimony. Also drowning the quote is pessimism surrounding Brexit and
the UK’s political conditions, as well as fears of disappointment from the BoE. Looking forward, the cable may witness a kneejerk upside in case of firmer UK inflation data.
|LOCAL AND INTERNATIONAL BENCHMARK RATES|
|GBP BOE RATE||1.25%|
|EUR ECB RATE||0.00%|
|USD FED RATE||0.79%|
|$ LIBOR 6 & 12 Month||2.81286/3.62057|
|£ LIBOR 6 & 12 Month||1.61260/2.28570|
For firm quotes and more information on other treasury products kindly contact our treasury team. Treasury team: Milton Onyuna, Alfred Too, Lorna Kageni, Martin Githinji, Ndanu Musyoka and Ryan Akalah
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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.