Bloomberg News

Kenya’s Shilling Strengthens for Second Day Against Dollar

January 06, 2012

Jan. 6 (Bloomberg) -- Kenya’s shilling advanced for a second day against the dollar following “intervention” by the central bank.

The currency of East Africa’s biggest economy gained 0.5 percent to 86.60 per dollar by 12:23 p.m. in Nairobi. The currency ended trading yesterday at 86.99.

“The shilling has strengthened on the back of Central Bank of Kenya intervention yesterday; some of the momentum is still coming through today,” Julius Kiriinya, a trader at Nairobi- based African Banking Corp., said in a phone interview today.

Yesterday the central bank accepted all of the 3.5 billion shillings ($40.5 million) of bids it received for repurchase agreements to curb supply of the local currency, after offering 3 billion shillings of the securities.

Tanzania’s shilling weakened 0.8 percent to 1,602 against the dollar, its lowest intraday level since Dec. 27.

“Demand is coming in from the oil sector, and traders seeking to cover their short positions,” Hamis Mwakibete, head of trading at Commercial Bank of Africa said today by phone from Dar-es-Salaam, the commercial capital.

Uganda’s shilling strengthened less than 0.1 percent to 2,454 against the U.S. currency.

“The market has remained flat because dollar inflows from commodity exports and some coming to the non-governmental sector is balancing the demand by oil importers,” Taib Lubega, a currency trader at Stanbic Bank Uganda, said by phone today from Kampala, the capital.

--With assistance from David Malingha Doya in Dar es Salaam. Editors: Peter Branton, Ash Kumar

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus