Daily Market Update
MARKET UPDATE FOR 24th March 2023
LOCAL MARKET
USD/KES
The Kenya shilling lost ground on Tuesday as elevated foreign exchange demand from energy importers and manufacturers continued to pressure the local currency. Expected range today is 127.55 – 141.00.
| INDICATIVE FOREX RATES | ||||
| CROSS RATES | AGAINST KES | |||
| USD | 127.55 | 142.95 | ||
| GBP | 1.2135 | 1.2539 | 154.78 | 179.25 |
| EUR | 1.0684 | 1.0988 | 136.27 | 157.07 |
| JPY | 128.69 | 131.72 | 0.9683 | 1.1108 |
| ZAR | 16.597 | 19.606 | 6.51 | 8.61 |
| CHF | 0.9107 | 0.9211 | 138.48 | 156.97 |
| CAD | 1.3668 | 1.3769 | 92.64 | 104.59 |
| KES/UGX | 3730 | 3830 | 26.09 | 30.03 |
| KES/TZS | 2285 | 2395 | 15.98 | 18.78 |
MONEY MARKET
CBK analysis on Wednesday showed liquidity was skewed in the market. The regulator was therefore in the market for KES 5Bn in 7 and 21 day reverse repos 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 | 7,177.46 | 3,691.85 | 930.89 |
| Amount Accepted | 7,176.92 | 3,406.42 | 920.89 |
| Current Rate | 9.829% | 10.344% | 10.787% |
| Previous Rate | 9.780% | 10.285% | 10.777% |
GLOBAL MARKETS
The dollar pared earlier losses on Thursday after the Fed sounded close to calling time on interest rate hikes, while the SNB and BoE pushed ahead with further rate increases. The Fed raised its benchmark funds rate 25 basis points on Wednesday, but dropped “ongoing increases” being needed in favor of “some additional” rises. DXY was last up 0.078% at 102.510, set for its first winning day after 5 loss days.
EUR/USD depicts sluggish markets early Friday, staying defensive near 1.0830-20 after reversing from a 7- week high yesterday, printing mild losses of late. Notably, Euro reverses from the multi-day high on Thursday as bond yields paused further downside while US data also came in mostly impressive. March’s German, Europe and US Preliminary PMIs will join US February Durable Goods Orders to entertain EUR/USD traders. GBP/USD pares weekly gains at a nearly 2-month high as bulls run out of steam amid mixed risk catalysts and anxiety ahead of the top-tier UK/US data today. Cable thus retreats from a 7-week high, as it flirts with the daily low near 1.2260. However, major attention should be given to the banking headlines and Fed/BoE bets for clear direction. Signing of the Brexit deal over the NIP as UK Foreign Secretary Cleverly and European Commission President Maros Sefcovic will chair a meeting to discuss how to formally adopt the new arrangements. Source: Reuters.
| LOCAL AND INTERNATIONAL BENCHMARK RATES | |
| Local Inflation | 9.23% |
| KES CBR | 8.75% |
| GBP BOE RATE | 4.25% |
| EUR ECB RATE | 3.50% |
| USD FED RATE | 5.00% |
| SOFR O/N RATE | 4.55% |
| BRENT OIL (BARREL) | 75.71 |
| MURBAN CRUDE (BARREL) | 76.64 |
For firm quotes and more information on other treasury products kindly contact our treasury team. Treasury team: Milton Onyuna, Alfred Too, Lorna Kageni, Martin Githinji, Ndanu Musyoka, Ryan Akalah, Dennis Ingolo, and Elizabeth Kiarie.
Telephone Contacts: 020 3275 XXX; EXT.244/221/185/550/257/558/180
Mobile Lines: 0703 058 XXX; EXT.244/221/185/550/378/257/558/180
Email: dealing@boakenya.com
Disclaimer
Whilst every care has been taken in compiling this market update, the Bank will not be responsible for 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.