World Economy

Kenya Shilling Overvalued?

Kenya Shilling Overvalued?Kenya Shilling Overvalued?

The Kenyan shilling touched a low of 97.35 against the dollar, a sign the local currency could be headed for the worst drop in three-and-a-half years, NewsNow reported. Analysts say the local unit could come under more pressure in coming days as importers buy more of the US currency in anticipation of end-month demand. Some analysts see the shilling likely crossing 100 mark against the dollar. “The shilling still has room to weaken further,” Bobby Otieno, Ecobank Kenya’s country treasurer, said. But this time round, he added, the shilling is not expected to hit the 2011 levels of 107 units to the dollar.