The Eurozone debt crisis is the major cause of the turbulent exchange rate, which pushed the shilling to a record low of 2,478 on Tuesday, the Central Bank clarified on Tuesday.
While the US economy is not yet fully on its feet, four major European economies Greece, Portugal, Spain and Ireland are battling a financial meltdown.
Because of this, investors holding assets and other investments in euros are converting them into dollars.
This has caused an unprecedented demand for the dollar, making it more expensive internationally.
While the US economy is not yet fully on its feet, four major European economies Greece, Portugal, Spain and Ireland are battling a financial meltdown.
Because of this, investors holding assets and other investments in euros are converting them into dollars.
This has caused an unprecedented demand for the dollar, making it more expensive internationally.
