Daily Market Update
MARKET UPDATE FOR 26th July 2024
LOCAL MARKET
USD/KES
The Kenya shilling was stable on Thursday, but could come under pressure due to offshore dollar demand, while any sales by the central bank could give it a boost. Expected range today is 130.00 -135.00
| INDICATIVE FOREX RATES | ||||
| CROSS RATES | AGAINST KES | |||
| USD | 130.00 | 135.00 | ||
| GBP | 1.2709 | 1.3113 | 165.22 | 177.03 |
| EUR | 1.0707 | 1.1008 | 139.19 | 148.61 |
| JPY | 152.22 | 155.27 | 0.8373 | 0.8869 |
| ZAR | 16.804 | 19.815 | 6.56 | 8.03 |
| CHF | 0.8762 | 0.8866 | 146.63 | 154.07 |
| CAD | 1.3762 | 1.3866 | 93.75 | 98.10 |
| KES/UGX | 3685 | 3795 | 27.30 | 29.19 |
| KES/TZS | 2635 | 2745 | 19.52 | 21.12 |
MONEY MARKET
CBK analysis on Thursday showed a square market. The regulator therefore stayed out of the market in order to remain within the monetary policy path set by 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 | 25,810.20 | 4,147.37 | 1,688.45 |
| Amount Accepted | 19,642.88 | 1,622.70 | 1.676.37 |
| Current Rate | 16.0000% | 16.8506% | 16.9212% |
| Previous Rate | 16.0215% | 16.8521% | 16.8971%% |
GLOBAL MARKETS
Most Asian currencies moved in a flat-to-low range on Friday with the Chinese yuan logging wild swings amid suspected intervention by the People’s Bank, while the USD steadied ahead of key inflation data. The DXY steadied to 104.30 on Friday after seeing some resilience on stronger-than-expected GDP data for the 2Q. Focus is now squarely on PCE Price index datawhich is the Fed’s preferred inflation gauge. The reading is due later on Friday and is expected to show inflation eased further in June.
The EUR/USD pair trades around 1.0860 during the Asian session on Friday, extending its gains after rebounding from a two-week low of 1.0825 recorded on Wednesday. This upside of the EUR/USD pair is attributed to the weakening of the USD ahead of the release of the US PCE Price Index for June. The Euro has encountered difficulties as the near-term European Central Bank’s (ECB) outlook remains uncertain due to strong expectations of additional rate cuts.
The GBP/USD pair gains traction near 1.2860 amid the weaker Greenback, snapping the three-day losing streak during the Asian trading hours on Friday. However, the potential upside of the major pair seems limited as market players expect the Bank of England (BoE) to cut interest rates in August.
Source: Reuters
| LOCAL AND INTERNATIONAL BENCHMARK RATES | |||
| Local Inflation | 4.60% | ||
| KES CBR | 13.00% | ||
| GBP BOE RATE | 5.25% | ||
| EUR ECB RATE | 4.25% | ||
| USD FED RATE | 5.50% | ||
| SOFR O/N RATE | 5.34%, 3.665%, 5.2000% | ||
| BRENT OIL ($/BARREL) | 82.50 | ||
| MURBAN CRUDE ($/BARREL) | 81.38 | ||
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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.