In Kenya Shilling strengthens on T-bill yields, tea agency dollar sales

Yields on Treasury bills have also been climbing, attracting offshore investors. At this week's auction, yields rose above 20 percent on 91-day, 182-day and 364-day T-bills.

  • Published:
A currency dealer counts Kenya shillings at a money exchange counter in Nairobi in a file photo. REUTERS/Antony Njuguna play A currency dealer counts Kenya shillings at a money exchange counter in Nairobi in a file photo. REUTERS/Antony Njuguna
24/7 Live - Subscribe to the Pulse Newsletter!

Kenya's shilling strengthened on Friday, supported by rising yields on government securities and dollar sales by tea agencies paying bonuses to farmers.

At 0642 GMT, banks quoted the shilling at 104.15/25 to the dollar, compared with Thursday's close of 104.40/50.

"The shilling has strengthened, but I don't know if we will get enough momentum to break 104," said one dealer at a commercial bank.

He said tea agencies were selling dollars to pay shilling bonuses to farmers, which are usually paid in April and October.

A fuel attendant handles Kenyan shilling notes at a petrol station in the capital Nairobi March 15, 2011. REUTERS/Noor Khamis play A fuel attendant handles Kenyan shilling notes at a petrol station in the capital Nairobi March 15, 2011. REUTERS/Noor Khamis

 

READ: Apex bank to expand its Bond Index

Yields on Treasury bills have also been climbing, attracting offshore investors. At this week's auction, yields rose above 20 percent on 91-day, 182-day and 364-day T-bills.

Traders say a shortage of shilling liquidity has also been supporting the shilling and keeping overnight lending rates high. This week, overnight rights rose to around 27 percent, up from 13 percent in early September.

Do you ever witness news or have a story that should be featured on Pulse Nigeria?
Submit your stories, pictures and videos to us now via WhatsApp: +2349055172167, Social Media @pulsenigeria247: #PulseEyewitness & DM or Email: eyewitness@pulse.ng. More information here.