Daily Market Update

Bank Through Conversations

Begin Chat

MARKET UPDATE FOR 24th January 2022

LOCAL MARKET

USD/KES

The Kenyan shilling was barely changed on Friday, trading just above the all-time lows it hit in the previous session as tax payments by international firms helped stymie
losses. Expected range today is 112.00-116.00.

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 112.00 116.00
GBP 1.3397 1.3798 150.05 160.06
EUR 1.1173 1.1477 125.14 133.13
JPY 112.31 115.32 0.9712 1.0329
ZAR 13.592 16.608     6.74    8.53
CHF 0.9087 0.9191 121.86 127.65
CAD 1.2517 1.2618  88.76  31.92
KES/UGX  3475  3575 29.96  21.12
KES/TZS 2255 2365  19.44  21.13

MONEY MARKET

CBK analysis on Friday showed a square market. The regulator therefore remained 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  1,925.63  12,313.24 14,429.44
Amount Accepted 1,689.28 12,241.14 14,006.88
Current Rate 7.331% 8.069% 9.510%
Previous Rate 7.309% 8.081% 9.474%

 

GLOBAL MARKETS

The dollar was up on Monday morning in Asia, with the U.S. Federal Reserve’s latest policy decision due later in the week. US preliminary PMIs for January will direct intraday moves. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched
down 0.10% to 95.735.

EUR/USD is under pressure in the opening session for the week and easing off from $1.1345 highs to $1.1332 as risk-off continues on the back of Friday’s bearish close on Wall Street. Asian markets are lower on Monday with the Fed Reserve expected to confirm it will soon start draining the massive liquidity that has fulled stock markets for years. Russia-Ukraine fears and Omicron updates add to the watcher’s list and weigh on prices. Preliminary readings of January PMI and inflation data can act as buffers ahead of Wednesday’s
FOMC.

GBP/USD struggles to keep corrective pullback and seesaws around $1.3550 heading into Monday’s London open. In doing so, the cable pair fails to justify the US dollar strength ahead of the key preliminary PMI numbers for January for the UK and the US. Other tha the pre-PMI cautious, the pair’s indecision could also be linked to the market’s fears of hawkish Fed during Wednesday’s FOMC meeting. A rise in death tolls also weighs on the sterling.

Source: Reuters

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 5.73%
KES CBR 7.00%
GBP BOE RATE 0.25%
EUR ECB RATE -0.50%
USD FED RATE 0.25%
$ LIBOR 6 & 12 Month 0.44443/0.79857
£ LIBOR 3 & 6 Month 0.55480/0.88460

 

For firm quotes and more information on other treasury products kindly contact our treasury team. Treasury team: Milton Onyuna, Alfred Too, Lorna Kageni, Martin Githinji and Ndanu Musyoka
Telephone Contacts: 020 3275 XXX; EXT.244/221/185/550/257/558/180
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.

Bank Through Conversations

Begin Chat