Daily Market Update
MARKET UPDATE FOR 28th 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 | 141.10 | ||
| GBP | 1.2085 | 1.2487 | 154.39 | 176.19 |
| EUR | 1.0615 | 1.0919 | 135.61 | 154.07 |
| JPY | 129.36 | 132.37 | 0.9651 | 1.0908 |
| ZAR | 16.674 | 19.684 | 6.49 | 8.46 |
| CHF | 0.9133 | 0.9237 | 138.30 | 154.49 |
| CAD | 1.3682 | 1.3783 | 92.69 | 103.13 |
| KES/UGX | 3730 | 3830 | 26.44 | 29.98 |
| KES/TZS | 2285 | 2395 | 16.19 | 18.75 |
MONEY MARKET
CBK analysis on n Monday showed liquidity was skewed in the market. The regulator was therefore in the market for
KES 15Bn in 7 and 14 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 | 930.04 |
| 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 Japanese Yen led gains across Asian currencies on Tuesday, while the dollar retreated as traders grew less
concerned over an imminent banking crisis and pivoted into more risk-driven assets after the government brokered takeover of collapsed lender SVB by peer First Citizens Banc Shares Inc. The Dollar retreated further against a basket of currencies in Asian trade, as safe haven demand for the greenback waned amid easing concerns of a banking crisis. DXY and DXY futures fell about 0.2% each on Tuesday. EUR/USD turned sideways after a firmer rally near 1.0820 in Asia. The pair struggles to extend its upside , however, more gains seem likely amid improved market sentiment. Fading US banking jitters and rising hopes for an unchanged monetary policy by the
Fed have strengthened risk appetite. Investors shift their focus toward German HICP on Thursday. This is projected to soften firmly to 7.5% from 9.3%. The GBP/USD pair has extended its recovery above the round-level resistance of 1.2300 in the Asian session. The Cable has got strengthened amid DXY weakness in hopes the Fed will keep interest rates steady in its May monetary policy meeting to contain the banking fiasco. GBP has been strengthened after hawkish guidance by BoE Governor Bailey in his speech at the London school of Economics. Bailey reiterated the need for more hikes if inflation persists . 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 | 4.80% |
| BRENT OIL (BARREL) | 77.36 |
| MURBAN CRUDE (BARREL) | 78.52 |
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.