Shilling holds firmly against US dollar

The shilling traded flat against the U.S. dollar in a quiet market as demand was well matched by supply in the interbank.

“Today a similar trend is expected with low to moderate level of volatility,” Standard Chartered Bank says in today’s daily market report.

The shilling seems to comfortably trading at around 1,600/- a greenback.

The shilling stability is contributing on lowering interest rates. The interbank cash market has recorded down trend on the overnight and one week rates.

The overnight rates decreased to 1 per cent and 10 per cent levels. Repurchase agreement (Repo) market was very active for couple of weeks past, whereby its window is open every day for any interested party to venture.

The repo rates have shown significant drop at 3 per cent and 5 per cent for one week and two weeks respectively.

In yester-market 25bn/- were mopped through Repo for one and two weeks respectively.

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