Kenya’s shilling strengthened for a third day, gaining the most in more than a week, on higher dollar inflows from increased coffee supplies at the weekly auction and higher tea prices.
The currency of East Africa’s largest economy appreciated 0.1 percent to 83.95 by 2:41 p.m. in Nairobi, the capital, the most on a closing basis since July 9, according to data compiled by Bloomberg.
Kenya’s coffee supplies rose 68 percent to 32,581 bags of 50-kilograms (110-pound) each from 19,389 bags at the previous sale on July 3, the Nairobi Coffee Exchange said in an e-mailed statement today. Sales at the auction almost doubled to $3.94 million from $1.98 million over the same period as buyers replenished stocks before a four-week break that began yesterday, the exchange said. The auction will resume on Aug. 14, it said.
African tea prices rose to an average of $2.98 a kilogram (2.2 pounds) at a weekly sale in Mombasa, Kenya, Tea Brokers East Africa Ltd. said in an e-mailed statement today. Prices climbed from $2.92 a week earlier.
“The shilling recouped its losses after dollars from tea and coffee sector,” Nairobi-based NIC Bank Ltd. (NICB) said in a note to clients today.
The Central Bank of Kenya accepted 500 million shillings ($5.9 million) of seven-day repurchase agreements at a weighted average rate of 14.5 percent, a bank official who declined to be identified in line with policy said by phone from Nairobi. It also accepted 500 million shillings of 11-day term-auction deposits at 14.3 percent, the official said.
Uganda’s shilling gained for a second day, rising 0.1 percent to 2,467.50 per dollar, while the Tanzanian shilling strengthened by less than 0.1 percent to 1,585 per dollar.
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