Bloomberg News

Kenya’s Shilling Weakens First Time This Week on Dollar Demand

February 15, 2012

Feb. 15 (Bloomberg) -- Kenya’s shilling weakened for the first time this week on increased dollar demand by businesses.

The currency of East Africa’s biggest economy depreciated as much as 0.3 percent and traded 0.1 percent lower at 82.88 per dollar as of 4:24 p.m. in Nairobi.

“The weakening of the shilling is due to growing dollar demand with minimal inflow,” John Muli, a dealer at Nairobi- based African Banking Corp., said in a phone interview.

Tanzania’s shilling strengthened for the second day as investors bought the local currency to invest in treasury bills. The currency of the second-biggest economy in East Africa appreciated as much as 0.8 percent before paring its gain to 0.2 percent at 1,589 per dollar as of 4:05 p.m. in Dar es Salaam, Tanzania’s commercial capital.

“The shilling has appreciated mainly due to today’s treasury bills auction,” Hakim Sheik, a dealer with Commercial Bank of Africa Tanzania Ltd., said by phone from Dar es Salaam.

Tanzania auctioned 100 billion shillings ($63 million) worth of treasury bills today, according to central bank. The results are to be announced today.

The Ugandan shilling weakened the most in four days, depreciating 0.1 percent to 2,312.76 to the dollar at 3:57 p.m. A close at this level will be the lowest since Feb 9., according to data compiled by Bloomberg.

--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


American Apparel's Future
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