NAIROBI (Reuters) - The Kenyan shilling strengthened against the dollar on Thursday, after touching the 76.00 level in the previous session, which traders said was a natural correction ahead of the festive season.
At 0755 GMT, commercial banks quoted the local unit at 75.70/80 per dollar compared with Wednesday's close of 75.90/76.00.
Traders said the move was a predictable stabilising of the shilling after recent pressures on it as importers had made last minute festive purchases.
"It is a natural correction after recent losses," said Benson Kaburu, a senior trader at Standard Chartered Bank.
Traders said they expect the shilling to stay rangebound for the rest of the month between 75.40 and 76.00 because trading will slow for the Christmas period.
"It is going to be a very dull rest of the month. With lots of people off for the festive season I don't expect much activity until next year," Kaburu said.
However, traders at Bank of Africa expect some muscling by the shilling on the back of dollar inflows by Kenyans abroad sending their families some spending money for the holidays.
Tea and horticulture exporters are also expected to give the local currency a boost and a 20-year Treasury bond issued by the government on Wednesday may draw some foreign investor demand, they said in a regular market report.
Source:af.reuters.com/
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