A persistent lack of dollar demand continued to boost the performance of the shilling against the dollar on Friday.
With supply for foreign currency outweighing dollar buyers, the home unit stood tall against the greenback throughout the session holding at the 3660-3690 band by the closing bell.
As the dearth in foreign currency demand ensues, we see the local unit strengthening further against the dollar barring any fresh factors.
The dollar advanced on Friday as bullish housing data offset weaker labour data, adding to growing expectations that the U.S. economy will continue to expand.
Reports from the Commerce Department showed housing starts rose 16.9% to a seasonally adjusted annual rate of 1.61 million units in December, well above economists’ estimates for 1.38 million and the biggest gain in 13 years.
The pound fell to $1.301 as disappointing retail sales data raised expectations that the Bank of England will cut rates at its meeting today.
The euro was down to $1.11 as bearish sentiment on the single currency continued ahead of the European Central Bank meeting this week.