The shilling traded relatively flat versus the greenback in what was a gloomy Tuesday trading session.
Sideways trading was the dominant theme in the local currency market with activity from both demand and supply counters remaining well balanced through the session.
Yesterday’s trading range will likely be preserved as market searches for fresh economic rudiments to give price direction.
The U.S. dollar was flat on Tuesday, as sentiment on risk was hurt slightly on a report that U.S. tariffs on Chinese goods will remain in place through the 2020 election despite both sides expected to wrap up the phase one trade deal today.
Gains in the greenback were also kept in check by tamer U.S. inflation data that strengthened expectations the Federal Reserve will keep interest rates lower for longer.
The pound rebounded from lows trading at $1.305 but still under pressure from weak data releases, raising the chances of a cut to interest rates by the Bank of England.
Money markets forecast an almost 50% probability of a cut at a meeting on Jan. 30.
The euro was mildly supported by risk-on sentiment, remaining off a two-week low of $1.10855 hit on Friday, and last trading at $1.1124.