The home unit seesawed between gains and losses in the previous trading session, ending the day unchanged versus its American counterpart.
Early trading saw the shilling advance marginally against the dollar on the back of augmented inflows. As the session progressed foreign currency buyers retreated from the sidelines to take advantage of the low levels to the detriment of the local unit.
Ahead of the weekend, our view for the shilling remains on the bullish camp, there being no fresh market-moving factors.
The U.S. dollar fell back slightly from a two-year high after the excitement of the Federal Reserve’s wait-and-see approach wore off.
The Fed cut rates by 25 basis points on Wednesday, the first cut in a decade, but indicated it may not be
aggressive in its approach going forward.
The euro was down against the dollar as the European Central Bank is expected to take a more aggressive stance on monetary easing than the Fed, which would dampen appetite for the common currency.
The sterling fell after the Bank of England kept rates steady. The bank voted unanimously to keep the rate at 0.75%, as expected but downgraded its projections for growth for the next two years.
