120.00 is the recent peak exchange rate for the US dollar against the Kenyan Shilling. For years on end, the Kenyan shilling has devalued against the US dollar, The incessant bull run can be attributed to a number of factors: - First, the strength of the US dollar. Second, is the weakening shilling.
The US economy may very well be headed to an economic recession but the US currency is not showing exhaustion from its rally. The US dollar has gained value in its exchange rates with other currencies in the major global currencies basket. Certainly, the Corona Virus pandemic and the eastern Europe conflict have consolidated the US dollar hegemony.
With respect to the weakening shilling, pundits have warned against the growing fiscal debt and its consequence on the exchange rates for the shilling. The key exchange rates as illustrated in this price chart, #USDKES: 85.00, 103.96, and 119.90, are subject to the election cycle in Kenya - March 2013, August 2017, and August 2022 respectively. Technically, observing the upward trend recorded in the period, it is likely that the bullish trend will continue to form new highs. Conversely, one can argue that the shilling will gain value in the long term owing to the performance of the 5th government's policies. However, that remains to be seen and is completely speculative.
In summary, the exchange rate, #USDKES, is likely to remain bullish in the short term.
The US economy may very well be headed to an economic recession but the US currency is not showing exhaustion from its rally. The US dollar has gained value in its exchange rates with other currencies in the major global currencies basket. Certainly, the Corona Virus pandemic and the eastern Europe conflict have consolidated the US dollar hegemony.
With respect to the weakening shilling, pundits have warned against the growing fiscal debt and its consequence on the exchange rates for the shilling. The key exchange rates as illustrated in this price chart, #USDKES: 85.00, 103.96, and 119.90, are subject to the election cycle in Kenya - March 2013, August 2017, and August 2022 respectively. Technically, observing the upward trend recorded in the period, it is likely that the bullish trend will continue to form new highs. Conversely, one can argue that the shilling will gain value in the long term owing to the performance of the 5th government's policies. However, that remains to be seen and is completely speculative.
In summary, the exchange rate, #USDKES, is likely to remain bullish in the short term.