Johnstone Ole Turana
Oct. 24 (Bloomberg) -- Kenya’s shilling slumped to the lowest in a week against the dollar as businesses increased demand for the U.S. currency to pay bills.
The currency of East Africa’s biggest economy depreciated for a second day, losing 0.5 percent to 100.75 per dollar in Nairobi from a close of 100.25 on Oct 21.
“The shilling has weakened due to growing demand by businesses to settle their end-month obligations and with minimal inflows it’s bound to remain under pressure in coming days,” Jeremiah Kendagor, acting head of trading at Nairobi- based Kenya Commercial Bank Ltd., said by phone today.
The shilling has depreciated 20 percent this year, making it the world’s worst performer against the dollar. Inflation accelerated for the 11th consecutive month in September to 17.3 percent from 16.7 percent in August, more than triple the government’s target.
--Editors: Ana Monteiro, Peter Branton
To contact the reporter on this story: Johnstone Ole Turana in Nairobi at email@example.com
To contact the editor responsible for this story: Antony Sguazzin at firstname.lastname@example.org