Kenya’s shilling strengthened for a second against the U.S. currency after a weekly coffee auction brought dollars into East Africa’s biggest economy.
The currency gained 0.3 percent to 84.15 per dollar by 1:28 p.m. in the capital, Nairobi, according to data compiled by Bloomberg, bringing its two-day gain to the most on a closing basis since April 3.
“There are good inflows from traditional sources; coffee and horticulture,” Duncan Kinuthia, head of trading at the Nairobi-based Commercial Bank of Africa Ltd., said by phone. “Buyers are also staying out because they expect the dollar to gain. There is a bit of speculation.”
Kenya’s coffee sales earned $1.39 million at yesterday’s auction, according to the Nairobi Coffee Exchange, a 29 percent decline from a week earlier. The nation was the fourth-biggest African producer of coffee in the 2011-12 season, according to the U.S. Department of Agriculture. It produces mainly the arabica variety of beans and exports to countries including Germany, the U.S., Canada, the U.K. and the Netherlands, according to the Coffee Producers and Traders Association, which owns the exchange.
Uganda’s currency gained a third day, climbing 0.7 percent to 2,558 per dollar, the strongest intraday rate since Nov. 5. Tanzania’s shilling advanced as much as 1.1 percent and traded less than 0.1 percent stronger at 1,622 per dollar.
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