Bloomberg News

Kenyan Shilling Weakens for Third Day on Increased Dollar Demand

February 17, 2012

Feb. 17 (Bloomberg) -- Kenya’s shilling weakened for the third day, heading for its longest losing streak in more than a month, on increased demand for dollars by businesses.

The currency of East Africa’s biggest economy depreciated 0.1 percent to 83.10 per dollar as of 1:02 p.m. in Nairobi, targeting its longest declining stretch since Jan. 10, according to data compiled by Bloomberg.

“The weakening of the shilling is due to 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 also fell as oil importers and construction companies bought dollars. The currency of the second-biggest economy in East Africa weakened 0.4 percent to 1,600. A close at this level would be the lowest since Jan 24., according to data compiled by Bloomberg.

“Demand is coming in from oil companies and the construction sector today,” Hakim Sheik, a dealer with Commercial Bank of Africa Tanzania Ltd., said today by phone from Dar es Salaam, the commercial capital.

The Ugandan shilling snapped a two-day losing streak, trading 0.1 percent stronger at 2,317.25 per dollar.

-- With assistance from David Malingha Doya in Dar es Salaam Editors: Ash Kumar, Stephen Kirkland

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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