Daily Market Update

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MARKET UPDATE FOR 15th October 2021

LOCAL MARKET

USD/KES

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
USD 109.45 112.45
GBP 1.3529 1.3930 148.07 156.64
EUR 1.1456 1.1760 125.39 132.24
JPY 112.54 115.55 0.9472 1.9992
ZAR 13.268 16.282 6.72 8.48
CHF 0.9177 0.9281 117.93 122.53
CAD 1.2305 1.2406 88.22 91.39
KES/UGX 3558 3658 31.64 33.42
KES/TZS 2250 2360 20.01 21.56

MONEY MARKET

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)
Tenor 91-day 182-day 364-day
Amount Offered 4,000.00 10,000.00 10,000.00
Bids Received 3,015.78 3,961.63 2,438.75
Amount Accepted 3,015.78 3,961.63 2,392.50
Current Rate 6.952% 7.428% 8.225%
Previous Rate 6.935% 7.316% 8.028%

 

GLOBAL MARKETS

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.

Source: Reuters

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 6.91%
KES CBR 7.00%
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

 

For firm quotes and more information on other treasury products kindly contact our treasury team. Treasury team: Milton Onyuna, 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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