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Kenya shilling

higher vs dollar

NAIROBI: The Kenyan shilling strengthened further against the dollar and pound sterling after the central bank increase in treasury bill interest rates last Thursday, commercial bank traders said.

The shilling was posted at a commercial bank mean rate of 56.80 against the dollar, up 35 cents from Friday's mid-rate of 57.15, and at 91.31 to the pound from 91.64 on Friday.

Economic analysts with Loita Asset Management, a Nairobi-based management investment firm, attributed the shilling's rise to Thursday's rise in interest rates for short-term treasury bills.

"The authorities' (CBK) strategy now seems to be one of attracting foreign currency holders through high short-term interest rates," the report stated.

"This is likely to be successful, at least in the short run, and we should expect the shilling to stay in the 55-60 range against the dollar this week," it added.-Reuter