Nov. 15 (Bloomberg) -- Kenya’s shilling, the world’s best- performing currency against the dollar this month, weakened as investors bought dollars after the currency reached the strongest level in almost three months yesterday.
The currency of East Africa’s biggest economy depreciated 0.1 percent to 94 per dollar by 6:21 p.m. in Nairobi. Yesterday, 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 weakening of the shilling is largely due to increase interest from buyers who are seeking to accumulate dollars at these new levels,” Jeremiah Kendagor, acting head of trading at Nairobi-based Kenya Commercial Bank Ltd., said by phone.
The Tanzanian shilling strengthened 0.6 percent to 1,754 per dollar, while Uganda’s currency weakened for the first day in three, losing 0.2 percent to 2,595.
--Editor: Ana Monteiro
--Editors: Ana Monteiro, Stephen Kirkland
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