Bloomberg News

Kenyan Shilling Weakens Second Day on Increased Dollar Demand

February 05, 2012

Feb. 3 (Bloomberg) -- Kenya’s shilling weakened for a second straight day this week on increased dollar demand.

The currency of East Africa’s biggest economy depreciated as much as 0.5 percent and traded 0.3 percent lower at 84.00 per dollar as of 12:43 p.m. in the capital, Nairobi, according to data compiled by Bloomberg.

“The shilling has weakened on account of increased dollar demand by businesses,” Duncan Kinuthia a dealer at Nairobi- based Commercial Bank of Africa Ltd., said in a phone interview today.

Tanzania’s shilling strengthened against the dollar, up for the second time this week. The currency of East Africa’s second- biggest economy appreciated as much as 0.4 percent and traded 0.2 percent higher at 1,592 as of 12:39 p.m.

“Dollar demand has eased off following the bulk purchase of petroleum products for this month,” Eric Chijoriga, a trader with National Bank of Commerce Ltd., ABSA Group’s Tanzanian unit, said today by phone from Dar es Salaam, the commercial capital. “We expect the shilling to continue trading stronger today,” he said.

Uganda’s shilling depreciated as much as 0.5 percent before paring its decline to 0.1 percent at 2,316.75 per dollar as of 12:26 p.m.

-- 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


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