Daily Market Update

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MARKET UPDATE FOR 24th June 2021

LOCAL MARKET

USD/KES

The Kenyan shilling held steady on Monday but it was likely to remain under pressure from strong demand for dollars from grain, oil importers and manufacturers.
Expected range today is 115.60 – 124.70.

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 115.50 124.50
GBP 1.2078 1.2509 139.80 155.74
EUR 1.0339 1.0719 120.29 133.45
JPY 134.76 137.79 0.8425 0.9285
ZAR 14.491 17.500 6.63 8.64
CHF 0.9633 0.9737 119.48 130.19
CAD 1.2917 1.3021 88.81 96.50
KES/UGX 3680 3780 29.68 32.86
KES/TZS 2278 2388 18.29 20.67

MONEY MARKET

CBK analysis on Tuesday showed a square market. The regulator therefore remained 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 3,070.87 7,323.74 8,998.36
Amount Accepted 3,043.36 7,322.40 7,864.12
Current Rate 7.925% 9.096% 9.961%
Previous Rate 7.866% 9.037% 9.952%

 

GLOBAL MARKETS

The dollar was up on Wednesday morning in Asia. Investors now await cues on monetary policies from the Fed Chair’s testimonies to the Congress. Investors expect
the Fed to retain an aggressive tightening stance. The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.15%
to 104.377.

The Euro holds lower grounds near $1.0510, after refreshing the daily low near $1.0500, on the back of the broad dollar rebound. In doing so, the major currency
pair awaits comments from the ECB and Fed policymakers while justifying the risk-aversion wave amid early Wednesday morning in Europe. The quote’s latest
weakness could be linked to the broad US dollar rebound.

The Sterling fails to stay on the bull’s radar, retreating to $1.2250 during the mid-Asian session on Wednesday. The cable’s latest weakness could be linked to the
market’s risk-off mood, as well as anxiety ahead of the key UK CPI and Jerome Powell’s Testimony. Also drowning the quote is pessimism surrounding Brexit and
the UK’s political conditions, as well as fears of disappointment from the BoE. Looking forward, the cable may witness a kneejerk upside in case of firmer UK inflation data.

Source Reuters

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 7.08%
KES CBR 7.50%
GBP BOE RATE 1.25%
EUR ECB RATE 0.00%
USD FED RATE 0.79%
$ LIBOR 6 & 12 Month 2.81286/3.62057
£ LIBOR 6 & 12 Month 1.61260/2.28570

 

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 and Ryan Akalah
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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