The shilling caught a break from the recent pressure, gaining some ground versus its American counterpart.
Markets

Dollar in demand as safe haven

The shilling caught a break from the recent pressure, gaining some ground versus its American counterpart.

Activity started off rapidly earlier in the day but picked up later with most players lightening their dollar positions.

Foreign currency inflows from investors following the settlements from the just concluded 3yr and 10yr bond auction, also supported the local unit, lifting it 25 shillings higher than previous close.

Ahead of the weekend, indications are that the market may hold out at the current range within 3710-3760 before committing to a fresh direction.

The dollar rose to its highest level in more than three years on Thursday on higher demand as the dash for cash continued at a time when investors are concerned about potential liquidity issues despite the latest efforts from the Federal Reserve to calm investor fears.

The single currency continued to suffer losses against the US Dollar trading at the 1.0700 levels despite the bloc’s central bank announcing a ‘Pandemic Emergency Purchase Programme’ which were largely overlooked by traders who continued to flock to USD.

The pound, meanwhile, remained close to session lows of $1.1475 after the Bank of England on Thursday slashed rates and expanded its bond-buying program, ramping up its efforts to contain the economic fallout of the coronavirus pandemic.