Nov. 9 (Bloomberg) -- Kenya’s shilling gained for the third day against the dollar on higher earnings from tea and coffee.
The currency of East Africa’s biggest economy strengthened as much as 1.2 percent to 95.80, the strongest intraday rate since Sep 21, and traded 1 percent higher at 95.95 at 11:12 a.m. in Nairobi. Tanzania’s currency also gained, rising 0.5 percent to 1,763 per dollar, while Uganda’s shilling depreciated for the first day in three, declining 0.3 percent to 2,598 per dollar.
Kenyan benchmark coffee climbed as much as 23 percent to s $630 for a 50-kilogram (110-pound) bag from $514 two weeks earlier, the Nairobi Coffee Exchange said yesterday by e-mail from Nairobi.
“The shilling has gained on the back of increased inflow from coffee and tea sales and with the ongoing rains we expect an increase in the tea harvest resulting in more earnings,” Wilson Mutai, a trader at African Banking Corp. in Nairobi, said by phone today.
Inflation in Kenya, the world’s largest producer of black tea, accelerated to 18.9 percent in October from 17.3 percent the previous month, the statistics office said on Oct. 28, prompting Kenya’s central bank to increase its key lending rate by 5.5 percentage points to a record 16.5 percent on Nov. 1.
--Editors: James Kraus, Peter Branton
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