17th October 2014 INTERNATIONAL MARKET: KENYA SHILLING: EURO The Kenya shilling extended its gains against the US dollar on Thursday after offshore investors showed interest in the 12-year infrastructure bond worth Kes 15-billion. At the close of market, the USD-KES pair was up 30-cents at 88.80/89.00, up from its opening price of 89.10/89.30. Today, the shilling is likely to find support at 88.70 and find resistance at 89.20. In the debt market, bonds worth Kes 31 billion were traded, up from Kes 1.3 billion traded on Wednesday. In the Primary market, yield on the 91-day Treasury bill rose to 8.715% from 8.614%. COUNTER RATES USD GBP EUR JPY CHF ZAR 87.10 139.20 110.10 0.7975 90.90 145.60 116.90 0.8875 90.60 6.40 1.5600 1.2520 USD/JPY 103.5 1.6480 1.3080 110.90 97.60 USD/CHF 0.91 0.98 9.60 USD/ZAR 9.50 12.8 CAD 75.07 82.07 UGX 0.03025 0.03680 USD/UGX 2510 2865 TZS 0.04970 0.05620 USD/TZS 1515 1785 INR AED 1.40920 1.46920 USD/INR 59.10 63.45 22.70 25.70 USD/AED 3.500 3.790 MONEY MARKET RATE Inter-Bank Overnight rates USD/CAD 0.95 1.2550 Current 6.0574% Previous 5.9258% 91-day Treasury Bill 8.714% 8.614% 182-day Treasury Bill 8.986% 8.742% 10.172% 10.380% 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 softened against the US Dollar on Thursday after investors applauded a fresh round of U.S. economic indicators as well as a U.S. response to handle an potential Ebola outbreak in the country. In U.S. trading, EUR/USD was down 0.26% at 1.2801, up from a session low of 1.2706 and off a high of 1.2845. The pair was likely to find support at 1.2623, Wednesday's low, and resistance at 1.2886, Wednesday's high. The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Oct. 11 fell by 23,000 to 264,000 from the previous week’s total of 287,000. STERLING POUND: The Sterling pound was almost unchanged against the U.S. dollar on Thursday, still hovering close to an 11-month low as the greenback recovered from the previous day's sharp losses due to weak U.S. economic reports. GBP/USD hit 1.5951 during European morning trade, the session low; the pair subsequently consolidated at 1.6002, easing 0.11%. Cable was likely to find support at 1.5873, Wednesday's low and an 11-month low and resistance at 1.6103, the high of October 14. 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.