The shilling traded flat on the back of thin import appetite underpinned by low business activity. Supply was boosted by cyclical remittances. The unit held at 3740/50.
In the neighboring Kenya, the currency hit a fresh new low, undermined by huge dollar demand from manufacturing and energy sectors. KES was quoted at 121.85/122.05.
In the global markets, the US dollar held ground as markets tried to make sense out of mixed US economic data. The greenback had tumbled in recent weeks on inflation and comments from the Federal Reserve signaling that the Central Bank could put brakes and slow the pace of interest rates hikes.
In the UK, inflation jumped to a 41 year high, printing at 11.1% exceeding expectations as food , transport and energy prices continued to pile pressure on businesses and households.
In energy markets, oil prices fell as geopolitical tensions eased with China adding to the demand in the World’s largest crude importer. Brent crude dropped to USD 92.94 per barrel.
Forecast indicate that the unit is likely to hold ground after establishing strong support level amid lackluster market activity expected in the coming week.
Source: CEO East Africa
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