The Kenyan shi*ling on Wednesday advanced against the U.S. dollar to clock a level last seen some 12 months ago.
It traded at an average of 102.50 per the dollar, a year-high from 102.75 in the previous session on Tuesday when it recorded a 10-month high after the Central Bank of Kenya decided on Monday to retain the Central Bank Rate at 10.0%.
On Wednesday, the apex bank quoted the local currency at 102.55 du**ng the session up from 102.79 in the Tuesday trading.
On the other hand, commercial banks placed the local currency at between 102.30 and 102.40, a rise from 102.40 and 102.60.
Forex traders attributed the surge of the shi*ling to high inflows at the debt market as foreign investors buy infrastructure bond worth Ksh 39.7 bi*lion (US$388 mi*lion) floated over a week ago by the government.
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However, as it sustained an upw*rd trend against the dollar, the shi*ling has taken downw*rd path against the British pound, going down to 143.62 on Wednesday from 142.84 in the previous session.
A**lysts forecast that the shi*ling would rise in the coming days to reach 102.30 level due to high inflows and low demand for dollars.
