Daily Market Update

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MARKET UPDATE FOR 03rd August 2020

LOCAL MARKET

USD/KES

The shilling was firm on Friday supported by dollar inflows as demand slowly picks up towards end month as the country re-opens from novel covid-19 pandemic. Expected today is 105.00 –107.00.

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 106.60 108.60
GBP 1.2941 1.3343 137.95 144.90
EUR 1.1622 1.1923 123.89 129.48
JPY 104.36 107.38 0.9927 1.0406
ZAR 15.557 18.569 5.74 6.98
CHF 0.9107 0.9211 115.73 119.25
CAD 1.3351 1.3455 79.23 81.34
KES/UGX 3643 3743 33.55 35.11
KES/TZS 2270 2380 20.90 22.33

MONEY MARKET

CBK analysis on Friday showed excess liquidity. The regulator was in the market to mop KES. 40Bn in 7 days TAD

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 29,877.61 10,781.05 24,511.06
Amount Accepted 29,876.33 9,780.79 5,858.26
Current Rate 6.011% 6.524% 7.464%
Previous Rate 6.274% 7.759% 7.700%

GLOBAL MARKETS

Fears of a second wave of coronavirus infections have increased demand for safe-haven assets, driving the U.S. dollar on Friday to its best weekly gain in a month. The world’s reserve currency, which made small advances in the North American session, gained 0.54% this week against a basket of currencies to close at 97.61.

The euro was slightly weaker, down 0.14% at $1.119 as EU leaders made no progress in a video-conference on Friday on a 750 billion-euro ($840.8 billion) coronavirus recovery fund that has divided them bitterly for weeks. Sweden, Denmark, Austria and the Netherlands say the proposed recovery fund is too big and the allocation of money not sufficiently linked to the pandemic.

Sterling was on track for its worst week since mid-May after fresh data on Friday showed government borrowing had hit record highs and had exceeded economic output for the first time since 1963; more evidence that the coronavirus-stricken economy was a long way from recovering. The pound was down 0.4% against the dollar at $1.2378.

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 5.47%
KES CBR 7.00%
GBP BOE RATE 0.10%
EUR ECB RATE -0.50%
USD FED RATE 0.00%
$ LIBOR 6 & 12 Month 0.41450/0.57575
£ LIBOR 6 & 12 Month 0.31400/0.50025
€ LIBOR 6 & 12 Month -0.30029/-0.18957

 

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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