Daily Market Update

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MARKET UPDATE FOR 20th September 2019

LOCAL MARKET

USD/KES

The shilling was stable against the dollar on Thursday with dollar inflows into the market helping soak up pressure from increased dollar demand. Expected trading range is 103.60 –104.60.

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 102.80 104.70
GBP 1.2405 1.2807 127.52 134.09
EUR 1.0907 1.1208 112.12 117.35
JPY 106.36 109.38 0.9398 0.9844
ZAR 13.262 16.268 6.32 7.89
CHF 0.9863 0.9967 103.14 106.15
SEK 9.4780 9.8810 10.40 11.05
CAD 1.3211 1.3317 77.19 79.25
KES/UGX 3625 3725 34.62 36.24
KES/TZS 2245 2355 21.44 22.91

MONEY MARKET

CBK analysis yesterday showed a skewed market. The regulator thus stayed out of the market in order to remain within the set monetary policy 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 684.12 708.01 23,498.55
Amount Accepted 681.19 708.01 19,868.53
Current Rate 6.368% 7.150% 9.705%
Previous Rate 6.315% 7.143% 9.582%

GLOBAL MARKETS

The dollar nursed losses against most major currencies early Friday, as central banks in Switzerland and the UK refrained from following the Federal Reserve in cutting rates, while risk appetite ebbed on caution about U.S-China trade talks. The U.S. dollar index was little changed at 97.835. This week, the Fed cut interest rates for a second time this year as expected.

Sterling hit a two-month high of $1.2560 against the greenback overnight after European Commission President Jean-Claude Juncker said he thought Brussels could reach a deal with Britain to leave the European Union.

The Euro jumped 0.2% to 1.1053. EUR/USD’s struggle for a clear directional bias continues despite the pullback in the US treasury yields and ahead of the Eurozone Consumer Confidence data. Eurozone’s preliminary Consumer Confidence index for September is expected to come in at -7, having printed at -7.1 in August.

Source: Reuters

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 5.00%
KES CBR 9.00%
GBP BOE RATE 0.75%
EUR ECB RATE -0.50%
USD FED RATE 2.00%
$ LIBOR 6 & 12 Month 2.08150/2.06450
£ LIBOR 6 & 12 Month 0.83425/0.93738
€ LIBOR 6 & 12 Month -0.40129/-0.34000

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