NAIROBI (Reuters) - The Kenyan shilling was flat on Friday, taking a breather after three straight sessions of gains, while traders said it could firm further on reduced demand for dollars from companies.The shilling has gained 0.7 percent since April 2, as investors unwound dollar hedge positions taken before the elections.At 0716 GMT, commercial banks quoted the shilling at 84.70/90 to the dollar, the same level it closed at on Thursday."There is reduced demand for dollars from corporates. There was quite a bit of stockpiling before the election and forward covering," said Christopher Muiga, a senior trader at Kenya Commercial Bank.The shilling has gained 1.5 percent against the dollar this year, mainly due to peaceful presidential elections on March 4 which were in contrast to the previous poll in 2007 when a disputed outcome led to violence that brought the economy to its knees.This time around the dispute was settled by the Supreme Court, which upheld Uhuru Kenyatta's election victory.Kenyatta is scheduled to be sworn-in on Tuesday.Traders say technical analysis suggests the shilling could strengthen below its 84.50 resistance level and target 84.00 in coming sessions.
Posted on Friday, 05 April 2013 08:35
April 5, 2013, 10:36 am