The shilling traded relatively flat versus the greenback in what was a dull start to the week. The home unit was little changed against the dollar in a session that saw both demand and supply equally matched.
Dollar demand from corporate and interbank players tipped the scale slightly in the afternoon and helped the USDUGX currency pair maintain its winning streak on the day.
Yesterday’s trading range will likely be preserved as market searches for fresh economic rudiments to give price direction.
Dollar ticks up
The dollar ticked up to 97.532, remaining below the two-year high of 98.260 reached last Thursday. The greenback was pressured lower late last week as weak U.S. economic data fuelled fears that the escalating trade and tech war between the U.S. and China is hitting growth.
The dollar’s strength was also capped after U.S. President Donald Trump used his Tokyo visit to press Japan to take measures to reduce its trade surplus with the United States. The pound slipped as low as $1.2673, retreating after early gains.
The British currency bounced on Friday after Prime Minister Theresa May set out a date for her departure, but sterling remains near 4-1/2 month lows. The prospect of a “no-deal” Brexit is fast becoming the defining issue of the race to succeed May, keeping the pound under pressure.
The euro struggled to cling on to gains as investor relief at limited success for eurosceptic parties in European parliamentary elections was offset by a decline in the share of seats held by the biggest blocs.
The single currency initially rose as high as $1.1215, off two-year lows of $1.1105 touched on Thursday. But it later fell to stand down at $1.1197 in subdued trading because of market holidays in London and New York.