The Kenyan shilling stayed steady against the dollar this week even as the U.S. currency weakened for a second straight week. The local unit closed at Ksh129.19, unchanged from April 30.
The U.S. dollar index fell 0.4 percent to 97.877 on Friday, May 8, its lowest level since February 27. This decline followed investor moves away from the currency amid ongoing uncertainty tied to the Iran conflict that began in late February.
The Central Bank of Kenya reported that the shilling remained stable against major currencies in the week ending May 7. Traders told Reuters they expect the unit to hold steady in the days ahead.
Fuel supply issues have added pressure, with shortages reported in Nairobi from May 3 and later confirmed across more areas. Energy and Petroleum Cabinet Secretary Opiyo Wandayi described the problem as a technical hitch and said there is no cause for alarm.
International oil prices dropped during the week, with Murban crude falling to USD 89.13 per barrel on May 7 from USD 100.21 on April 30. The Energy and Petroleum Regulatory Authority is set to announce new pump prices on May 14.
