Daily Market Update
MARKET UPDATE FOR 23rd December 2024
LOCAL MARKET
USD/KES
Kenya’s shilling gained slight ground against the dollar on Friday amid slow activity.
Expected range today is 126.50 -131.50
| INDICATIVE FOREX RATES | ||||
| CROSS RATES | AGAINST KES | |||
| USD | 126.50 | 131.50 | ||
| GBP | 1.2427 | 1.2833 | 157.20 | 168.75 |
| EUR | 1.0289 | 1.0598 | 130.16 | 139.30 |
| JPY | 155.12 | 158.17 | 0.7998 | 0.8477 |
| ZAR | 16.788 | 19.794 | 6.39 | 7.83 |
| CHF | 0.8882 | 0.8988 | 140.74 | 148.05 |
| CAD | 1.4305 | 1.4408 | 87.81 | 91.93 |
| KES/UGX | 3625 | 3735 | 27.57 | 29.53 |
| KES/TZS | 2340 | 2490 | 17.79 | 19.68 |
MONEY MARKET
CBK analysis on Friday showed a square market. The regulator was therefore not in the market in order to remain within the monetary policy path 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 | 6,314.68 | 3,035.47 | 3,728.60 |
| Amount Accepted | 6,285.41 | 3035.47 | 3,720.80 |
| Current Rate | 9.9546% | 10.0216% | 11.5372% |
| Previous Rate | 10.0311% | 10.0015% | 11.7572% |
GLOBAL MARKETS
Most Asian stocks rose on Monday, tracking gains in Wall Street after softer U.S. inflation data spurred bets that interest rates will still fall in the coming year. The DXY reached 108.55 and looks set to end the year on a rather elevated level.
The EUR/USD remains steady following the gains from the previous session, trading around 1.0430 during the Asian hours on Monday. This upside of the pair could be attributed to the decline in the US Dollar (USD) following the Personal Consumption Expenditures Price Index (PCE) data from the United States (US). However, moderate growth in the US inflation may cause the Federal Reserve (Fed) adopting a slower pace of additional cuts in 2025.
The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow trading range above mid-1.2500s during the Asian session. The Fed’s hawkish tilt, elevated US bond yields and geopolitics underpin the USD. The BoE’s dovish outlook further holds back the GBP bulls.The US Dollar (USD) pulled back from a two-year high on Friday after the Personal Consumption Expenditure (PCE) Price Index report for November pointed to signs of inflation moderation and lingering challenges for the economy
Source Reuters
| LOCAL AND INTERNATIONAL BENCHMARK RATES | |||
| Local Inflation | 2.75% | ||
| KES CBR | 11.25% | ||
| GBP BOE RATE | 4.75% | ||
| EUR ECB RATE | 3.15% | ||
| USD FED RATE | 4.50% | ||
| SOFR O/N RATE | 4.30%, 2.919%, 4.7000% | ||
| BRENT OIL ($/BARREL) | 72.91 | ||
| MURBAN CRUDE ($/BARREL) | 73.45 | ||
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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.