The Kenyan shilling was stable against the dollar, with a weekly tea auction and the central bank’s regular draining of excess liquidity expected to lend support to the local currency.
The shilling traded at 84.20/30 per dollar, barely changed from Monday’s close of 84.10/30.
Kenya is the world’s biggest exporter of black tea, and the crop is its largest foreign currency earner. The average price of the top grade of tea fell to $4.00 per kg last week, from $4.04 per kg previously.
However, traders warned importers would take advantage of a stronger shilling to buy more dollars.
Persistently high levels of shillings in the market has seen the central bank step up open market operations this year and traders said they expected the bank to drain excess liquidity once again on Tuesday.
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