MARKET UPDATE FOR 15th October 2021
Kenya shilling was little changed on Thursday and traders said it was expected to ease due to scant dollar supply.
Expected range today is 109.45-112.45
|INDICATIVE FOREX RATES|
|CROSS RATES||AGAINST KES|
CBK analysis on Wednesday showed a square market. The regulator therefore stayed out of the market in order to remain within MPC path.
|LOCAL MONEY MARKET|
|TREASURY BILLS AND BONDS (MIO KES)|
The dollar headed for its first weekly decline versus major peers since the start of last month, falling back from a one-year high as traders turned their attention to when the U.S. Federal Reserve will start raising interest rates. Improved market sentiment, which has lifted global stocks, commodity prices and bond yields, is also weighing on the safe-haven dollar. The dollar index sat at 94.034 on Friday. Retail sales figures are in focus today.
The euro slipped 0.09% to $1.1588 after touching $1.1624 on Thursday for the first time since Sept. 4. However, in the early Asia trading session, the Euro is seen advancing above 1.1600, amid improving market sentiment as risk-on mood caps the US dollar’s rebound. Weighing on the currency are ongoing central bank divergences between the ECB and a Federal Reserve ready to start the bond taper.
Sterling was 0.1% higher at $1.36835 following its climb to the highest since Sept. 24 at $1.3734 overnight as traders focused on hopes that a post-Brexit trade war with the European Union will be avoided and on expectations the Bank of England will raise rates this year. The pound was also helped by dollar weakness as upbeat sentiment lifted stock markets and risk-oriented currencies such as sterling.
|LOCAL AND INTERNATIONAL BENCHMARK RATES|
|GBP BOE RATE||0.10%|
|EUR ECB RATE||-0.50%|
|USD FED RATE||0.25%|
|$ LIBOR 6 & 12 Month||0.15675/0.26575|
|£ LIBOR 6 & 12 Month||0.27250/0.53950|
|€ LIBOR 6 & 12 Month||-0.54086/-0.48629|
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