Bloomberg News

Kenya Shilling Slips for 1st Day in 3 on Importer Dollar Demand

July 22, 2011

July 22 (Bloomberg) -- Kenya’s shilling weakened for the first day in three against the dollar as importers raised demand for the U.S. currency.

The currency of East Africa’s biggest economy weakened 0.1 percent to 90.08 per dollar in Nairobi, Kenya’s capital, bringing its decline this week to 0.4 percent.

“The shilling has weakened slightly due to increased demand for the greenback and we expect it to trade within the 89.70-90.30 band as the European crisis eases off following yesterday’s decision to offer further support to Greece,” Wilson Mutai, a trader at Nairobi-based African Banking Corp., said in a phone interview today.

Yesterday, European leaders in Brussels announced 159 billion euros ($229 billion) of new aid for Greece. They also empowered their 440 billion-euro rescue fund to buy debt across stressed euro nations after a market rout last week sparked concern the crisis was spreading.

--Editors: Ana Monteiro, Linda Shen

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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