The local unit advanced by 10 shillings against the American currency in Thursday’s trading session.
Markets witnessed the shilling’s recovery which was attributed to improved foreign currency inflows that cowed demand for foreign currency from interbank players, culminating in a strong finish for the local currency.
Ahead of the weekend, the home unit may hold on to its acquired gains and possibly set new ranges. The dollar was boosted by better-than-expected labour market data, underpinning investor hopes for a robust nonfarm payrolls report due today.
The U.S. Department of Labor reported yesterday that initial jobless claims dropped by 15,000 to a seasonally adjusted 202,000, beating economists’ forecast for a drop to 215,000. The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose to 98.36.
The euro fell to $1.0975 as European Central Bank Governor Christine Lagarde reinforced expectations that the central bank’s ultra-loose monetary measures will remain in place at least until the year. Sterling was broadly flat against the greenback, with GBP/USD down at $1.2988.
The U.K. and EU are slated to get trade talks underway only in March, but tough rhetoric from both sides has raised fears that tough negotiations lie ahead, keeping the pound on the back foot against the dollar.