NAIROBI, Jan. 3 (Xinhua) -- The Kenya shilling continued on a downward trajectory on Wednesday going down 0.10 percent against the U.S. dollar as importers sustained demand for the greenback.
The local currency traded in the Wednesday session at an average of 103.40, a major decline from 103.30 where it closed on Tuesday.
Central Bank of Kenya (CBK) quoted the shilling at 103.35 to the dollar, a decline from 103.29 in the Tuesday trading.
On the other hand, commercial banks placed the local unit at between 103.40 and 103.60 from Tuesday's margins of 103.30 and 103.50.
Forex traders attributed the steady decline of the shilling to increased demand for dollars from oil importers amid low inflows from key sectors like agriculture, remittances and debt market.
Against the British pound, the shilling similarly went down to trade at a low of 140.09 from 139.65 on Wednesday.
However, despite the steady decline of the currency, analysts noted the shilling would stabilize due to CBK's intervention activities, as the apex bank had sufficient forex reserves, which last Friday stood at 7.1 billion or an equivalent of 4.7 months of import cover.
