Kenya Shilling Snaps Three-Day Drop as Central Bank Raises Rate
Oct. 5 (Bloomberg) -- Kenya’s shilling rallied for the first time in four days against the dollar after the nation’s central bank increased its benchmark rate by 400 basis points to 11 percent to stem inflation and curb the currency’s decline to the weakest on record.
The currency of east Africa’s biggest economy appreciated 0.9 percent to 101.07 per dollar by 3:15 p.m. in Nairobi. The shilling weakened to 104.2 on Sept. 27, the lowest since 1994.
“This move will go a long way to restoring confidence in Kenya’s monetary authority, which was losing credibility,” Yvonne Mhango, a Johannesburg-based economist with Renaissance Capital, wrote in an e-mailed note to clients today.
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