Daily Market Update
MARKET UPDATE FOR 3rd May 2024
LOCAL MARKET
USD/KES
The Kenyan shilling was steady on Thursday and traders said the east African nation’s currency was expected to
weaken in coming days due to increased demand for dollars from the manufacturing sector.
Expected range today is 133.00—138.00
| INDICATIVE FOREX RATES | ||||
| CROSS RATES | AGAINST KES | |||
| USD | 133.00 | 138.00 | ||
| GBP | 1.2400 | 1.2801 | 163.68 | 177.93 |
| EUR | 1.0584 | 1.0886 | 139.71 | 151.32 |
| JPY | 151.42 | 154.43 | 0.8548 | 0.9180 |
| ZAR | 17.039 | 20.053 | 6.58 | 8.16 |
| CHF | 0.9040 | 0.9141 | 144.40 | 153.76 |
| CAD | 1.3613 | 1.3714 | 96.25 | 102.11 |
| KES/UGX | 3740 | 3850 | 26.91 | 29.17 |
| KES/TZS | 2539 | 2649 | 18.27 | 20.07 |
MONEY MARKET
CBK analysis on Thursday showed liquidity was skewed in the market. The regulator therefore was in the market
for KES 40 BN in 6 day reverse repo in order to remain within the monetary policy set by the MPC.
| LOCAL MONEY MARKET | |||
| TREASURY BILLS AND BONDS (MIO KES) | |||
| Tenor | 91-day | 182-day | 364-day |
| Amount Offered | 4,000.00 | 10,000.00 | 10,000.00 |
| Bids Received | 10,103.16 | 5,203.82 | 10,660.71 |
| Amount Accepted | 9,977.11 | 5,195.56 | 10,660.71 |
| Current Rate | 15.8652% | 16.4875% | 16.4952% |
| Previous Rate | 15.8232 % | 16.4600% | 16.4924% |
GLOBAL MARKETS
Most Asian currencies rose slightly on Friday, capitalizing on a drop in the dollar as markets hunkered down
before key U.S. payrolls data that is likely to factor into interest rates. The DXY steadied in Asian trade after
tumbling in overnight trade, as pressure from the yen and expectations of no more interest rate hikes by the
Federal Reserve dented the greenback.
The EUR/USD extends its winning streak, trading around 1.0730 during the Asian session on Friday. The risk-sensitive currencies like the Euro gain ground as risk appetite regains balance ahead of US NFP. ECB Chief Economist Philip Lane said in a virtual guest lecture at the University of Stanford that while inflation has
decreased more rapidly than initially anticipated by the ECB, the transmission of policy effects lags and the tightening impacts from previous rate hikes are still unfolding.
The GBP/USD trades on a stronger note around 1.2540 amid the softer USD on Friday during the early Asian session. The BoE will announce its interest rate decision next week. The BoE is anticipated to hold interest rates steady at 5.25% .
Source: Reuters.
| LOCAL AND INTERNATIONAL BENCHMARK RATES | |||
| Local Inflation | 5.00% | ||
| KES CBR | 13.00% | ||
| GBP BOE RATE | 5.25% | ||
| EUR ECB RATE | 4.50% | ||
| USD FED RATE | 5.50% | ||
| SOFR O/N RATE | 5.32%, 3.907%, 5.1999% | ||
| BRENT OIL ($/BARREL) | 83.97 | ||
| MURBAN CRUDE ($/BARREL) | 83.95 | ||
:
For firm quotes and more information on other treasury products kindly contact our treasury team
Treasury team: Milton Onyuna, Martin Githinji, Lorna Kageni, Musa Ongori,
Dennis Ingolo, Elizabeth Kiarie, Brian Gachanja and Oliver Kilonzo.
Telephone Contacts: 020 3275 XXX; EXT.244/558/257/185/378/245/221/526
Mobile Lines: 0703 058 XXX; EXT.244/558/257/185/378/245/221/526
Email: dealing@boakenya.com
Disclaimer
Whilst every care has been taken in compiling this market update, the Bank will not be responsible for any and shall be exempt from all liabilities in respect of any loss of any kind whatsoever, incurred by any persons as a consequence of relying on the above information or otherwise.