Kenya shilling holds steady, export earnings eyed

Reuters
A currency dealer counts Kenya shillings at a money exchange counter in Nairobi
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A currency dealer counts Kenya shillings at a money exchange counter in Nairobi October 23, 2008. REUTERS/Antony …

NAIROBI (Reuters) - The Kenyan shilling was stable on Tuesday and traders said it was likely to be supported by dollar inflows from tea exporters, staving off the risk from falling short-term rates.

At 0700 GMT, commercial banks posted the shilling at 86.15/25, unchanged from the previous day's close.

The currency of east Africa's biggest economy has been stuck in a rut in recent days due to sluggish demand for dollars from corporate customers.

A trader at Fidelity Bank said receipts from exports of tea could counterbalance the impact of improving liquidity in the money markets.

The overnight rate on the interbank borrowing market fell to 9.9771 percent on Monday from 10.4298 percent on Friday.

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