Daily Market Update
MARKET UPDATE FOR 18th November 2024
LOCAL MARKET
USD/KES
The Kenyan shilling weakened on Thursday due to increased demand for dollars across various sectors in the economy.
Expected range today is 127.00 -132.00
| INDICATIVE FOREX RATES | ||||
| CROSS RATES | AGAINST KES | |||
| USD | 127.00 | 132.00 | ||
| GBP | 1.2519 | 1.2927 | 158.99 | 170.64 |
| EUR | 1.0388 | 1.0690 | 131.93 | 141.11 |
| JPY | 154.87 | 157.88 | 0.8044 | 0.8523 |
| ZAR | 16.766 | 19.774 | 6.42 | 7.87 |
| CHF | 0.8844 | 0.8945 | 141.98 | 149.25 |
| CAD | 1.4010 | 1.4117 | 89.96 | 94.22 |
| KES/UGX | 3615 | 3725 | 27.39 | 29.33 |
| KES/TZS | 2600 | 2720 | 19.70 | 21.42 |
MONEY MARKET
CBK analysis on Thursday showed a square market. The regulator stayed out of 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 | 30,388.12 | 32,333.33 | 32,817.54 |
| Amount Accepted | 4,098.02 | 14,094.09 | 24,811.62 |
| Current Rate | 12.7905% | 13.0585% | 13.8993% |
| Previous Rate | 13.4496% | 13.8400% | 14.4476% |
GLOBAL MARKETS
Most Asian currencies moved little on Friday and were nursing losses for the week, while the USD steadied at a one-year peak and was set for a strong week as markets dialed back bets on lower rates. The USD was headed for a sixth straight week of gains as it extended its rally on Trump’s election victory from last week. Less dovish statements from the Fed and strong U.S. inflation readings added to the greenback’s strength.
The DXY rose 0.1% on Friday to 106.79 The EUR/USD briefly tested fresh year-long lows on Thursday, piercing the 1.0500 handle for the first time in 54 weeks. A lack of meaningful EU data is doing very little to provide support for the Euro, and Fiber bids continue to tilt in favor of the safe heaven USD. European GDP growth figures failed to spark a bid under the Euro, printing exactly at-expectations. Quarterly pan-EU GDP came in at 0.4% QoQ exactly as markets expected, with annualized GDP also matching forecasts at 0.9% YoY.
The GBP/USD pair edges lower to near 1.2675, the lowest level since August during the Asian trading hours on Friday. The cautious remarks from the Fed Chair Jerome Powell on Thursday and stronger US economic data boost the USD broadly and weigh on the major pair. Traders brace for the preliminary UK GDP for Q3, which is due later in the day. Source Reuters
| LOCAL AND INTERNATIONAL BENCHMARK RATES | |||
| Local Inflation | 2.70% | ||
| KES CBR | 12.00% | ||
| GBP BOE RATE | 4.75% | ||
| EUR ECB RATE | 3.25% | ||
| USD FED RATE | 4.75% | ||
| SOFR O/N RATE | 4.59%, 3.164%, 4.7000% | ||
| BRENT OIL ($/BARREL) | 71.96 | ||
| MURBAN CRUDE ($/BARREL) | 71.25 | ||
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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.