The Central Bank of Kenya (CBK), through its weekly bulletin, has revealed that the shilling posted a stable performance against the dollar over the past week.
The regulator indicated that on May 30, the shilling traded at Ksh131.87 against the dollar. This was a slight increase from Ksh131.36 as of May 23.
The posted results were stronger during the week when the dollar lost an estimated 0.4 per cent against other international currencies.
"Inflation has remained sticky in advanced countries, with headline inflation in Germany rising to 2.4 percent in May 2024 from 2.2 percent in April while France's inflation remained unchanged at 2.2 percent. The US dollar index weakened by 0.4 percent against a basket of major currencies during the week ending May 30," read the notice in part.
"The Kenya Shilling remained stable against major international and regional currencies during the week ending May 30. It exchanged at Ksh131.87 per US dollar on May 30, compared to Ksh131.36 per US dollar on May 23."
Earlier, experts predicted that the shilling will hit the Ksh100 mark against the dollar in September this year, the first time it will hit the pre-pandemic levels.
The analysts noted that the shilling will gain against the dollar after the US Federal Reserve reduces its policy rate.
Currently, the rates stand at 5.5 per cent which is an increase from July last year's 5.25 per cent.
Earlier, the rates strengthened the dollar against other currencies and the shilling hit its record high of Ksh161 in January this year.
In the weekly bulletin, CBK further noted that the global fuel prices had increased to Ksh11,059 (USD84.75) per barrel from Ksh10,909 (USD86.30) per barrel over the past week.
"International oil prices rose during the week ending May 30 attributed to growing global demand. Murban oil price increased to USD 84.75 per barrel on May 30 compared to USD 83.60 per barrel on May 23 in anticipation of the OPEC+ meeting scheduled for June 2, 2024," added the statement.
Currently, a litre of petrol retails at Ksh192.84, diesel at Ksh179.18 and kerosene at Ksh168.76. New changes will take effect on June 14.
Meanwhile, the Kenya National Bureau of Statistics (KNBS) monthly data indicated that the cost of living had shot up to 5.1 per cent in May from 5.0 per cent.
Commodities that recorded the highest increase were Transport (8.1 per cent); Food and Non-Alcoholic Beverages (6.2 per cent); and Housing, Water, Electricity, Gas, and other fuels (4.4 per cent).
