A teller handles U.S. dollar banknotes and Kenya shilling banknotes inside the cashier’s booth at a forex exchange bureau in downtown Nairobi, Kenya, February 16, 2024. REUTERS/Thomas Mukoya/File Photo

NAIROBI, Aug 16 (Reuters) – Kenya’s shilling was stable against the U.S. dollar on Friday, but traders said they expected it to come under pressure from foreign-currency demand from the manufacturing sector.

At 0900 GMT, commercial banks quoted the shilling at 128.50/129.50 to the dollar, the same level it closed on Thursday.

Foreign-currency inflows for a 50 billion Kenyan shilling infrastructure bond auction earlier this week have helped support the local unit in recent sessions.

“There’s a lot of (FX) demand kicking in,” one trader said. “What had lifted the shilling was the infrastructure bond (auction). Now the (market) fundamentals are coming back into play.”

(Reporting by Hereward Holland; Editing by Alexander Winning)