Kenya’s shilling snapped a seven-day rally, sliding from a six-week high, as businesses sought to acquire dollars following the gains.
The currency of East Africa’s largest economy depreciated as much as 0.9 percent to 84.33 per dollar and was trading 0.7 percent weaker at 84.17 by 12:04 p.m. in the capital Nairobi.
“The weakening of the shilling is weighed down by businesses taking profits and increased demand for dollars from oil importers as they seek to accumulate dollars on the recent gains,” Nairobi-based NIC Bank Ltd. (NICB), said in an note to clients. “We expect the market to trade within the 83.70 to 84.50 levels today.”
The Kenya shilling gained 2.2 percent in the seven days through yesterday, closing at 83.55 per dollar, the highest since May 11, according to data compiled by Bloomberg.
The central bank did not offer repurchase agreements and term-auction deposits for a third day today, a central bank official who asked not to be identified in line with policy said. The bank reintroduced term-auction deposits as a “liquidity management” measure on June 5.
Uganda’s shilling gained 0.2 percent to 2,463.50 per dollar, while Tanzania’s currency appreciated by 0.2 percent to 1,578 per dollar.
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