NAIROBI, Jan. 23 (Xinhua) -- The Kenyan shilling strengthened against the U.S. dollar on Tuesday, hitting a new high a day after the Central Bank of Kenya (CBK) met to set its benchmark rate.
CBK Monetary Policy Committee on Monday retained its key rate at 10 percent, noting inflation was under check at below 5 percent and the macro-environment was positive.
The shilling, which has been on an upward trajectory since the start of 2018, according to analysts, was waiting for direction from the decision.
And on Tuesday, the local unit gained to hit an average of 102.75 against the dollar, a 10-month high, from 102.85 in the previous session.
Commercial banks in the East African nation quoted the currency on Tuesday at between 102.60 and 102.80 up from 102.70 and 102.90.
The central bank, on the other hand, put the currency at 102.79 during the session up from 102.87 on Monday.
Currency traders attributed the surge to rise in inflows from foreign investors buying Treasury bonds worth 388 million dollars floated last week at the debt market.
Against the British pound, the shilling weakened on Tuesday to trade at 142.84 down from 142.69 on Monday. The shilling is expected to rise further this week as inflows surge. Enditem
