Kenya’s shilling depreciated the most in more than a week amid increased demand for dollars by businesses for their month-end obligations.
The currency of East Africa’s biggest economy weakened for the first time in three days as the Central Bank of Kenya increased the amount of funding it makes available through seven-day and 14-day term-auction deposits. The bank offered a total of 20 billion shillings ($238 million) for sale, according to an official who asked not to be identified in line with policy, the most since April 10. The bank uses the securities to reduce money supply and support the shilling.
“The shilling is on a weakening mode as businesses’ end- month demand kicks in and we expect it to drop to 84.20 levels by the end of the week,” Julius Kiriinya, a trader at Nairobi- based African Banking Corp., said by phone.
The shilling slid 0.2 percent to 83.95 per dollar by 12:52 p.m. in Nairobi. The currency has strengthened 2.6 percent this year, the third-best performance in Africa.
Uganda’s shilling appreciated 0.4 percent to 2,549 per dollar today, while the Tanzanian shilling rose 0.2 percent to 1,627 against the U.S. currency.
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