Daily Market Update
MARKET UPDATE FOR 21st SEPTEMBER 2023
LOCAL MARKET
USD/KES
The Kenya shilling weakened on Wednesday, undermined by a general increase in demand for dollars from importers across all sectors.
Expected range today is 141.16 – 152.55
| INDICATIVE FOREX RATES | ||||
| CROSS RATES | AGAINST KES | |||
| USD | 141.16 | 152.55 | ||
| GBP | 1.2168 | 1.2572 | 171.76 | 191.79 |
| EUR | 1.0483 | 1.0787 | 147.98 | 164.56 |
| JPY | 146.84 | 149.89 | 0.9418 | 1.0389 |
| ZAR | 17.411 | 20.420 | 6.91 | 8.76 |
| CHF | 0.8948 | 0.9052 | 155.94 | 170.49 |
| CAD | 1.3439 | 1.3544 | 104.22 | 113.51 |
| KES/UGX | 3693 | 3803 | 24.21 | 26.94 |
| KES/TZS | 2450 | 2560 | 16.06 | 18.14 |
MONEY MARKET
CBK analysis on Wednesday showed a square mar ket. The regulator was therefore staying 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 | 18,000.44 | 698.64 | 3,406.93 |
| Amount Accepted | 17,979.07 | 698.12 | 849.46 |
| Current Rate | 14.5151% | 14.4148% | 14.7282% |
| Previous Rate | 14.2337% | 14.3686% | 14.8603% |
GLOBAL MARKETS
Most Asian currencies tumbled on Thursday, while the dollar rose to six-month highs after the Federal Reserve warned that U.S. interest rates will remain higher for longer. The DXY grabs fresh oxygen and advances to new multi-session highs near 105.70 in the wake of the FOMC event.
The EUR/USD is trading close to weekly lows below 1.0650 in the early European morning on Thursday. The Fed, as expected, kept rates unchanged but indicated that one more rate hike before the yearend could be appropriate. US yields surges to multiyear highs, driving the US Dollar higher. Eurostat will release preliminary Consumer Confidence data on Thursday. Also relevant for the Euro will be decisions from the Swiss National Bank and the Bank of England.
The GBP/USD is consolidating losses in early Europe on Thursday, trading near a five-month low at 1.2304 set on Wednesday. The pair is weighed by the Fed’s hawkish stance and increased odds of a BoE rate hike pause, following a surprise fall in UK inflation. According to Reuters, the probability of the BoE holding its policy rate steady on Thursday climbed to 50% after UK inflation data, up considerably from 20% earlier in the week. Reflecting the impact of dovish BoE bets, the 2-year UK gilt yield fell more than 3%.
Source: Reuters.
| LOCAL AND INTERNATIONAL BENCHMARK RATES | |||
| Local Inflation | 6.73% | ||
| KES CBR | 10.50% | ||
| GBP BOE RATE | 5.25% | ||
| EUR ECB RATE | 4.50% | ||
| USD FED RATE | 5.25% | ||
| SOFR O/N RATE | 5.31%, 3.650%, 5.1854% | ||
| BRENT OIL ($/BARREL) | 92.85 | ||
| MURBAN CRUDE ($/BARREL) | 96.51 | ||
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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, Ryan Akalah,
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.