Bloomberg News

Kenya Shilling Drops 1st Day in 3 as Oil Importers Buy Dollars

July 14, 2011

July 14 (Bloomberg) -- Kenya’s shilling weakened for the first day in three, dragged down by oil importers’ demand for the dollar.

The currency of East Africa’s biggest economy fell as much as 0.3 percent to 89.85 per dollar and was trading 0.2 percent or 89.70 lower at 1:55 p.m. in the capital, Nairobi from yesterday’s close of 89.55.

“The shilling has been weakened by increased demand for the dollar by oil importers and we expect it to trade within the 89.50 to 90.00 range,” Wilson Mutai, a trader at Nairobi-based African Banking Corp Ltd., said in a phone interview today.

Crude oil rose 0.4 percent to $98.44 per barrel in New York today, bringing its 2011 gain to 7.7 percent.

--Editors: John Kohut, Alex Nicholson.

To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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