The currency of East Africa’s biggest economy depreciated as much as 0.4 percent to 83.25 and was trading 0.3 percent weaker at 83.20 at 2:11 p.m. in Nairobi.
“The shilling is under pressure as demand for dollars persists, with businesses seeking to settle their end-month obligations and the payment of the treasury bills by investors,” Duncan Kinuthia, a dealer at Nairobi-based Commercial Bank of Africa Ltd., said in a phone interview today. Kenya businesses are preparing to pay their end-month bills, invoices and place orders for the coming month.
Last week, the central bank sold a total of 4.5 billion shillings ($54.2 million) of 91-days and 182-days treasury bills, with settlement expected today, the bank said on its website.
Tanzania’s shilling fell for a second day on increased dollar demand. The currency of the second-biggest economy in East Africa depreciated as much as 0.4 percent to 1,598 and was trading 0.1 percent weaker at 1,592 per dollar at 1:02 p.m.
“The shilling has weakened due to increased dollar demand by businesses; a situation likely to continue through the week to cover their shortfalls,” Fred Siwale, a dealer with CRDB Bank Plc, said by phone today from Dar es Salaam, the commercial capital.
The Ugandan shilling weakened for a fourth day, the longest losing streak in three weeks. The currency of the third-biggest economy in East Africa depreciated as much as 1 percent to 2,515 and was trading 0.6 percent lower at 2,506 per dollar at 2:03 p.m. A close at that level will be the longest losing streak since March 5, according to data provided by Bloomberg.
-- With assistance from David Malingha Doya in Dar es Salaam. Editors: Peter Branton, Linda Shen
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