14th October 2014 INTERNATIONAL MARKET: EURO KENYA SHILLING: The Kenya shilling depreciated vis-a-vis the US dollar on Monday in quiet trade on Monday, with U.S. markets remaining closed for Columbus Day, hence reduced dollar inflows. At the close of market, the shilling was posted at 89.10/89.30 per dollar, 10-cents weaker than its opening price of 89.00/89.20. The Euro strengthened against the US Dollar on Monday after a key U.S. Federal Reserve official said rate hikes could come later than markets may be expecting. In U.S. trading, EUR/USD was up 0.44% at 1.2682, up from a session low of 1.2621 and off a high of 1.2697. The pair was likely to find support at 1.2604, Friday's low, and resistance at 1.2792, Thursday's high. Today, the sentiments point towards a weaker shilling; as dollar buying outweighs the sale on the back of reduced dollar inflows. The dollar has firmed against the euro and most other currencies in recent sessions on expectations for U.S. monetary policy to diverge with Europe and Asia. On the daily inter-bank lending, the rates have been dropping from a high of 6.70% experienced last week to a low of 5.96% which was seen yesterday. STERLING POUND: The Sterling pound edged higher against the US Dollar in quiet trade on Monday, with U.S. markets to remain closed for Columbus Day and although global growth concerns persisted. COUNTER RATES 87.20 140.20 109.70 0.7850 91.00 146.60 116.50 0.8750 1.5600 1.2520 USD/JPY 103.5 1.6480 1.2980 110.90 CHF ZAR 90.10 97.10 USD/CHF 0.93 0.99 6.50 9.70 USD/ZAR 9.50 CAD 76.10 83.10 UGX 0.03025 0.03625 USD/UGX 2510 2865 TZS 0.04975 0.05575 USD/TZS 1515 1785 INR AED 1.43040 1.49040 USD/INR 59.10 63.45 22.75 25.75 USD/AED 3.500 3.790 USD GBP EUR JPY MONEY MARKET RATE Inter-Bank Overnight rates USD/CAD 0.95 12.5 1.2550 Current 5.967% Previous 6.162% 91-day Treasury Bill 8.630% 8.653% 182-day Treasury Bill 8.742% 8.741% 10.380% 10.357% CBK CBR Rate 8.50% 8.50% Inflation Rate Kenya Bankers Ref Rate (KBRR) 6.6% 9.13% 8.36% 1-year Treasury Bill GBP/USD hit 1.6126 during European morning trade, the session high; the pair subsequently consolidated at 1.6089, adding 0.09%. Cable was likely to find support at 1.6006, Friday's low and resistance at 1.6227, the high of October 9. Market sentiment was hit last week after the International Monetary Fund cut its forecasts for global growth in 2014 and 2015 and warned that global growth may never reach its precrisis levels ever again. USD Libor 3-months UK Libor 3-months EU Libor 3-months USD 0.23160% 0.56275% 0.05214% GBP EUR * (Source: Source: Reuters, CBK, www.ozforex.com, XE Market Analysis, www.investing.com, and NIC Bank) INDICATIVE INTEREST RATES: $250,000> 1 Month 3 Month 6 Month 1 Year 7.00% 8.00% 9.00% 9.50% USD 2.50% 2.75% 3.00% 3.25% GBP 2.25% 2.50% 3.00% 3.25% EUR 2.25% 2.50% 3.00% 3.25% CCY KES Treasury Team:- Sankul Mandavia, Bernard Matimu, Maxwell Mutinda, Punit Jani, James Mwai ,Irene Nzuna, Margaret Wangeci, Bhavnisha Jethwa, Ellaine Wanjiru, Moses Tanui, Fred Kuria and Pauline Nyamu. Telephone contacts: - 0711041326 - 332/323 0711041571/501, 2888326 – 332 /323/ 2888571/501/ 0731201331, 0738066230 or 0738295005. Email Contact: - [email protected] Disclaimer: Whilst all considerable care has been taken by NIC Bank Ltd in preparation of this Market Brief, the Bank does not take responsibility howsoever in respect to any losses arising from errors, omission, opinions, forecasts or information given whether such losses are direct, indirect or consequential.
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