Kenya’s shilling rose to the highest in almost eight months against the dollar on subdued demand for the U.S. currency and increasing foreign investment in the East African nation.
The currency of the region’s biggest economy advanced as much as 0.3 percent to 83.79 per dollar, the strongest since Aug. 30 according to data compiled by Bloomberg, before trading little changed at 84 by 3:10 p.m. in the capital, Nairobi.
“There is very low demand for dollars and we are seeing quite a bit of foreign investment flows due to an increased risk appetite for Kenya,” Chris Muiga, a senior dealer at Kenya Commercial Bank Ltd. in Nairobi, said by phone.
Kenya’s stock market, the second-best performer in the world this year, has rallied 32 percent in dollar terms. The gauge climbed 13 percent since a March 4 presidential election that was won by Uhuru Kenyatta.
Uganda’s currency strengthened 0.4 percent to 2,525 per dollar, while Tanzania’s shilling fell 0.5 percent to 1,624.
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