The shilling was on the back foot yesterday versus the greenback on account of augmented dollar demand.
Activity in the local currency market picked up, with dollar appetite from importers and manufacturers dominant against fickle foreign currency inflows, to leave the local currency weaker compared to previous close.
Looking ahead, we expect shilling’s woes to continue if the recently witnessed uptick in appetite for the buck persists. This might however be pared should there be an upturn in foreign currency inflows and tightening liquidity later in the day.
Greenback inches higher than rivals
The U.S. dollar inched higher against its rivals on Thursday, adding to its post-Federal Reserve gains from a day earlier despite mixed U.S. economic data.
The mixed data did little to hurt the dollar, thanks to an ongoing rise in U.S. government bond yields after Fed Chairman Jerome Powell dented investor hopes for a rate cut a day earlier.
The pound fell to $1.3028 in a rocky session after the Bank of England left interest rates unchanged, but the bank raised its GDP forecast and kept a future rate hike on the table.
The euro was down at $1.1180 as better-than-expected Eurozone manufacturing growth was offset by German retail sales that fell short of estimates.