Daily Market Update

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MARKET UPDATE FOR 23rd November 2022

LOCAL MARKET

USD/KES

Kenya’s shilling was stable on Tuesday, and is expected to ease due to increased demand for dollars from manufacturing and oil retailing companies.
Expected range today is 117.90 – 128.80.

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 117.90 128.80
GBP 1.1737 1.2138 138.38 143.34
EUR 0.0175 1.0497 119.96 134.97
JPY 139.83 142.84 0.8254 0.9211
ZAR 15.750 18.761 6.28 8.185
CHF 0.9452 0.9555 123.39 136.27
CAD 1.3334 1.3441 87.72 96.60
KES/UGX 3695 3795 28.69 32.19
KES/TZS 2277 2387 17.68 20.25

MONEY MARKET

CBK analysis on Tuesday showed a square market. The regulator therefore stayed out of the market in order to remain within the monetary policy path set by the MPC.

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 16,252.07 15,803.05 8,946.27
Amount Accepted 12,184.75 13,227.07 4,673.31
Current Rate 9.191% 9.721% 10.181%
Previous Rate 9.173% 9.706% 10.186%

 

GLOBAL MARKETS

The U.S. dollar held firm on Wednesday, with investors on tenterhooks before the release of minutes of the Federal Reserve’s latest policy meeting which could offer clues on the outlook for inflation and the pace of interest rate hikes. The dollar index, which measures the currency against a basket of six counterparts was last trading at 107.110, having slipped 0.65% overnight.

EUR/USD remains mildly bid near 1.0320 as it cheers the US Dollar weakness during early Wednesday morning in Europe. Concerns about economic headwinds stemming from a spike in new COVID-19 cases in China and the imposition of fresh restrictions keep a lid on the optimism. Furthermore, expectations that the Fed will continue to raise borrowing costs to curb inflation acts as a tailwind for the buck and caps the EUR/USD pair. Hence, the market focus will remain glued to the November FOMC meeting minutes. In the meantime, traders will take cues from the flash PMI prints from the Eurozone and the US.

GBP/USD is eyeing an establishment above 1.1900 for further upside. US yields could remain at 4% or above till 2025 as the Fed may ignore economic prospects for bringing price stability. Looking ahead, there are PMI numbers due across Europe, the US and other countries as well as US jobs data.

Source Reuters

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 9.60%
KES CBR 8.25%
GBP BOE RATE 3.00%
EUR ECB RATE 1.50%
USD FED RATE 4.00%
SOFR O/N RATE 3.80%
BRENT OIL (BARREL) 88.09
MURBAN CRUDE (BARREL) 87.17

 

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, Ndanu Musyoka, Ryan Akalah, Dennis Ingolo, and Elizabeth Kiarie.
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.

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