Daily Market Update
MARKET UPDATE FOR 31st January 2025
LOCAL MARKET
USD/KES
The Kenyan shilling was unchanged against the dollar on Wednesday.
Expected range today is 126.50 -131.50
| INDICATIVE FOREX RATES | ||||
| CROSS RATES | AGAINST KES | |||
| USD | 126.50 | 131.50 | ||
| GBP | 1.2266 | 1.2672 | 155.16 | 166.64 |
| EUR | 1.0237 | 1.0540 | 129.50 | 138.60 |
| JPY | 153.22 | 156.23 | 0.8097 | 0.8582 |
| ZAR | 17.059 | 20.064 | 6.30 | 7.71 |
| CHF | 0.9049 | 0.9156 | 138.16 | 145.32 |
| CAD | 1.4427 | 1.4533 | 87.04 | 91.15 |
| KES/UGX | 3630 | 3740 | 27.60 | 29.57 |
| KES/TZS | 2485 | 2625 | 18.90 | 20.75 |
MONEY MARKET
CBK analysis on Thursday showed liquidity in the marketis skewed. The regulator was therefore in the market for Kes 10Bn in 4 day Reverse Repo 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 | 2,465.23 | 2,863.29 | 8,133.60 |
| Amount Accepted | 2,450.72 | 2,520.57 | 8,117.07 |
| Current Rate | 9.5219% | 10.0275% | 11.3132% |
| Previous Rate | 9.5252% | 10.0279% | 11.2945% |
GLOBAL MARKETS
Asian currencies declined on Friday, led by sharp losses in the South Korean won and Malaysian ringgit, as markets were rattled by fresh tariff threats from U.S. President Donald Trump, while the Japanese yen remained steady following strong inflation data from Tokyo. Trump threatened that he would impose significant trade tariffs on BRICS nations should the bloc pursue plans to develop a common currency aimed at reducing reliance on the USD. The DXY was marginally higher at 108.19 in Asian trading hours on Friday.
The EUR/USD pair attracts some sellers to around 1.0385 during the Asian trading hours on Friday. The expectation of further interest rate cuts by the ECB weighs on the Euro against the Greenback. Investors await more clarity about fresh tariff threats by US President Donald Trump for fresh catalysts.
The GBP/USD continues its losing streak for the fourth successive session, trading around 1.2420 during the Asian hours on Friday. This downside is attributed to the improved USD amid increased risk aversion following renewed tariff threats from US President Donald Trump. The GBP faces pressure as traders anticipate the BoE will resume its rate-cut cycle at next week’s policy meeting. The BoE is expected to lower rates by 25bps to 4.5% in February,
Source: Reuters
| LOCAL AND INTERNATIONAL BENCHMARK RATES | |||
| Local Inflation | 3.00% | ||
| KES CBR | 11.25% | ||
| GBP BOE RATE | 4.75% | ||
| EUR ECB RATE | 2.90% | ||
| USD FED RATE | 4.50% | ||
| SOFR O/N RATE | 4.35%, 2.923%, 4.7006% | ||
| BRENT OIL ($/BARREL) | 77.25 | ||
| MURBAN CRUDE ($/BARREL) | 78.98 | ||
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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.