Daily Market Update

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MARKET UPDATE FOR 14th November 2019

LOCAL MARKET

USD/KES

The shilling continued to strengthen against the dollar on Wednesday due to increased dollar supply from offshore investors and diaspora remittances. Expected range today is 101.50 –102.50.

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 100.95 102.85
GBP 1.2684 1.3085 128.04 134.58
EUR 1.0845 1.1146 109.48 114.64
JPY 107.20 110.23 0.9158 0.9594
ZAR 13.440 16.447 6.14 7.65
CHF 0.9849 0.9952 101.44 104.43
SEK 9.5544 9.9550 10.14 10.76
CAD 1.3210 1.3315 75.82 77.86
KES/UGX 3652 3752 35.51 37.17
KES/TZS 2248 2358 21.86 23.36

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 864.43 3,245.70 27,701.94
Amount Accepted 864.43 3,245.70 22,439.77
Current Rate 6.390% 7.261% 9.787%
Previous Rate 6.390% 7.189% 9.780%

GLOBAL MARKETS

The U.S. dollar was unmoved on Wednesday after prepared remarks from Federal Reserve Chairman Jerome Powell. Powell, who is testifying in front of Congress, said that while the economy is on track right now, there are risks to the current economic expansion. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was flat at 98.170.

Sterling was lower, with GBP/USD down 0.1% to 1.2836. Brexit party leader Nigel Farage’s rejection of the Conservative’s request of standing down more than 317 candidates, earlier promised, could negatively affect the British Prime Minister (PM) Boris Johnson’s popularity. PM Johnson was recently hackled during a speech to the flood-affected area. Though, polls concerning December election keep showing Tories holding the power.

Meanwhile, the EUR/USD was flat at 1.1008. German GDP data to be released today will give further direction to the common currency.

Source: Reuters

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 4.95%
KES CBR 9.00%
GBP BOE RATE 0.75%
EUR ECB RATE -0.50%
USD FED RATE 1.75%
$ LIBOR 6 & 12 Month 1.92613/2.00563
£ LIBOR 6 & 12 Month 0.88138/0.97075
€ LIBOR 6 & 12 Month -0.39114/-0.29243

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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