15th October 2014 INTERNATIONAL MARKET: EURO KENYA SHILLING: The Kenya shilling depreciated further vis-a-vis the US dollar on Tuesday on the back of diminished dollar inflows due to the U.S. markets holiday on Monday coupled with build-up of the dollar demand. At the close of market, the shilling was posted at 89.25/89.45 per dollar, 15-cents weaker than its opening price of 89.10/89.30. Today, we expect to see increased dollar demand, though we don’t foresee the shilling going past 89.50 due to the continues efforts by central back to soak up excess liquidity, which in turn is keeping the shilling steady against the US dollar. On the debt market, bonds worth Kes 1.1 billion were traded, up from Kes 759 million traded on Monday. COUNTER RATES 87.40 139.10 91.20 145.50 1.5600 1.6480 109.60 0.7890 116.40 0.8790 1.2520 USD/JPY 103.5 1.2980 110.90 CHF ZAR 90.00 97.10 USD/CHF 0.93 0.99 6.50 9.70 USD/ZAR 9.50 CAD 76.00 83.00 UGX 0.03025 0.03625 USD/UGX 2510 2865 TZS 0.04975 0.05575 USD/TZS 1515 1785 INR AED 1.42440 1.48440 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 5.8148% Previous 5.967% 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 The Euro dropped against the US Dollar on Tuesday after sluggish European data stoked market expectations for the European Central Bank to roll out fresh stimulus measures to spur recovery. In U.S. trading, EUR/USD was down 0.73% at 1.2658, up from a session low of 1.2640 and off a high of 1.2769. The pair was likely to find support at 1.2604, Friday's low, and resistance at 1.2792, Monday's high. The ZEW Centre for Economic Research reported earlier that its German economic sentiment index fell to -3.6 this month from September’s 6.9 reading. Analysts had expected the index to come in at 1.0 in October. STERLING POUND: The Sterling remained close to 11-month lows against the US Dollar on Tuesday, as lower than expected U.K. inflation data continued to weigh, as well as growing concerns over the outlook for global economic growth. GBP/USD pair consolidated at hit 1.5923, tumbling 1%. Cable was likely to find support at 1.5852 and resistance at 1.6128, Monday’s. The pound weakened broadly after data earlier showed that U.K. inflation data slowed to a five-year low last month. 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> CCY 1 Month 3 Month 6 Month 1 Year KES 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% 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.