Daily Market Update
MARKET UPDATE FOR 9th September 2024
LOCAL MARKET
USD/KES
The Kenya shilling slipped slightly on Friday, but it was expected to strengthen later in the session due to dollar inflows from remittances and the tourism sector.
Expected range today is 126.50 -131.50
| INDICATIVE FOREX RATES | ||||
| CROSS RATES | AGAINST KES | |||
| USD | 126.50 | 131.50 | ||
| GBP | 1.2966 | 1.3367 | 164.02 | 175.78 |
| EUR | 1.0924 | 1.1225 | 138.19 | 147.61 |
| JPY | 141.41 | 144.42 | 0.8759 | 0.9299 |
| ZAR | 16.343 | 19.348 | 6.54 | 8.05 |
| CHF | 0.8407 | 0.8508 | 148.68 | 156.42 |
| CAD | 1.3513 | 1.3614 | 92.92 | 97.31 |
| KES/UGX | 3660 | 3770 | 27.83 | 29.80 |
| KES/TZS | 2665 | 2775 | 20.27 | 21.94 |
MONEY MARKET
CBK analysis on Friday showed a square market. The regulator was therefore out of OMO 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 | 23,206.53 | 10,166.13 | 5,568.34 |
| Amount Accepted | 21.220.98 | 10,127.80 | 5,559.07 |
| Current Rate | 15.7677% | 16.6255% | 16.8228% |
| Previous Rate | 15.7844% | 16.6327% | 16.8421% |
GLOBAL MARKETS
Asian share markets slid on Monday after worries about a possible U.S. economic downturn slugged Wall Street, though U.S. stock futures did rally from an early dip and bond yields came off their lows. The DXY recovered its footing on Friday to 101.30 after the release of August NFP data came in mixed.
The EUR/USD attempts to recoup losses from the previous session, trading near 1.1090 during Monday’s Asian session. However, the EUR/USD pair’s upside may be capped, as recent eurozone inflation data have solidified expectations of a rate cut by the ECB at upcoming Thursday’s policy meeting. With headline inflation nearing 2% and long-term inflation forecasts holding steady around the same level, the ECB has sufficient justification to further ease its monetary policy stance.
The GBP/USD attracts some dip-buying during the Asian session on Monday and climbs back closer to mid -1.3100s in the last hour, though a combination of factors might cap any further gains. The closely-watched US monthly employment details released on Friday suggested that the labor market momentum is slowing more than expected and added to concerns about the health of the US economy.
Source: Reuters
| LOCAL AND INTERNATIONAL BENCHMARK RATES | |||
| Local Inflation | 4.40% | ||
| KES CBR | 12.75% | ||
| GBP BOE RATE | 5.00% | ||
| EUR ECB RATE | 4.25% | ||
| USD FED RATE | 5.50% | ||
| SOFR O/N RATE | 5.33%, 3.654%, 4.9500% | ||
| BRENT OIL ($/BARREL) | 71.81 | ||
| MURBAN CRUDE ($/BARREL) | 68.42 | ||
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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.