Bloomberg News

Kenyan Shilling Heads for Longest Losing Streak in Four Months

July 29, 2011

July 29 (Bloomberg) -- Kenya’s shilling headed for the longest streak of declines in more than four months against the dollar as oil importers sought to buy the U.S. currency to pay for the commodity.

The currency of East Africa’s biggest economy weakened for a sixth day, losing 0.1 percent to 91.20 per dollar by 11:31 a.m. in Nairobi, Kenya’s capital. A close at this level will be the longest losing streak since March 14, when it weakened for eight days, according to data compiled by Bloomberg. The currency is headed for a third month of declines, sliding 1.6 percent so far in July.

“The shilling is under pressure from oil importers who are seeking dollars to enable them meet businesses demand for diesel as they shift to thermal power following the start of power cuts,” Jeremiah Kendagor, acting head of treasury at Nairobi- based Kenya Commercial Bank Ltd., said in a phone interview today.

--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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