The Kenyan shilling has been projected to weaken against the United States dollar towards the end of May due to an increase in demand for the foreign currency.
According to Reuters, the local currency is expected to weaken marginally due to higher demand for the dollar from manufacturers, who require the foreign currency to complete their trade on the international market.
It is worth noting that international trade is primarily conducted using the dollar; therefore, increased demand for the US currency places pressure on the local currency, causing it to weaken.
Reports by forex experts indicated that demand for the dollar from the manufacturing sector is expected to outpace foreign currency inflows from diaspora remittances and Non-Governmental Organisations (NGOs).
