Kenya's shilling stable vs dollar, budget eyed
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Kenya's shilling stable vs dollar, budget eyed UPDATED 29 May 2009 | 12:12  
Kenya's shilling stable vs dollar, budget eyed

NAIROBI (Reuters) - Kenya's shilling was barely changed against the dollar in thin trade on Friday, and traders said activity might dwindle further ahead of the unveiling of the national budget next month.

At 1108 GMT, leading commercial banks posted the unit at 78.30/40 against the dollar compared with Thursday's close of 78.25/35.

Traders said the unit is likely to be trapped in the 77.50-78.50 band over the days ahead as the market holds off major buying or selling decisions until the finance minister presents the 2009/10 budget in parliament in mid-June.

"It has barely moved, there is hardly any demand. Activities will slow down, people anticipate there will be some sense of economic direction in the budget," said Andrea Balongo, a senior dealer at Kenya Commercial Bank.

Bank of Africa said the shilling could receive some pressure from the traditional end-month corporate appetite for dollars and the central bank of Kenya's aims of shoring up its hard currency reserves through purchase of dollars.

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