Bloomberg News

Kenya’s Shilling Gains on Higher Dollar Inflows From Tea Sales

January 26, 2012

Jan. 25 (Bloomberg) -- Kenya’s shilling strengthened for a second day on increased dollar inflows from the country’s tea producers.

The currency of East Africa’s biggest economy appreciated as much as 0.8 percent to 85.20 per dollar and traded 0.2 percent higher at 85.70 as of 2:03 p.m. in Nairobi, the capital.

“The shilling has gained on increased dollar inflows from the tea sale,” John Muli a dealer at Nairobi-based African Banking Corp., said in a phone interview today.

African tea prices declined to an average of $2.62 per kilogram from the previous week’s average of $2.74 at an auction in the Kenyan port city of Mombasa, Tea Brokers East Africa Ltd. said in an e-mailed report yesterday.

Tanzania’s shilling weakened for a third day on increased dollar demand from oil importers. The currency of the second- largest East African economy depreciated 0.6 percent to 1,605.70 per dollar.

“The shilling has weakened due to increased demand for dollars by oil importers and manufacturers seeking to import raw materials,” Yonoh Mtengule, chief economist at National Bank of Commerce Ltd., ABSA Group’s Tanzanian unit, said today by phone from Dar es Salaam, the country’s commercial Capital.

The Ugandan shilling strengthened for a fifth day, the longest streak since Dec 2., appreciating 0.5 percent to 2,365 at 1:25 p.m. in the capital Kampala.

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

To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus