Nov. 16 (Bloomberg) -- Kenya’s shilling, the world’s best- performing currency this month, weakened for a third day as oil importers bought dollars after the currency reached the strongest level in almost three months on Nov 14.
The currency of East Africa’s biggest economy depreciated 0.8 percent to 94.75 per dollar and was trading 0.6 lower at 94.60 at 11:38 a.m. in Nairobi. On Nov. 14 the shilling gained to 93.05 in intraday trading, the strongest since Aug. 29.
Kenya’s monetary policy committee increased the key lending rate by 5.5 percentage points to a record 16.5 percent on Nov. 1 as it battles to contain inflation spurred by the worst regional drought in 60 years and higher fuel prices. Inflation accelerated to 18.9 percent in October from 17.3 percent in the previous month.
“The shilling has weakened on account of increased demand from the oil importers as they seek to accumulate dollars at these new levels,” John Muli a dealer at Nairobi-based African Banking Corp., said by phone.
The Tanzanian shilling gained 0.1 percent to 1,752 per dollar, while Uganda’s currency weakened less than 0.1 percent to 2,594.
--Editors: Peter Branton, Ash Kumar
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