Kenya Shilling Drops Second Day on Europe; Uganda Shilling Falls
The currency of East Africa’s biggest economy depreciated by 0.2 percent 83.30 and was trading 0.1 percent lower at 83.25 to the dollar by 1:03 p.m., the highest since May 2 in Nairobi.
Emerging-market stocks fell the most in a month and the euro plunged to a three-month low against the dollar as Frances president-elect, socialist Francois Hollande, pledged less austerity and Greek voters picked anti-bailout parties.
“The shilling is on a weak note on account of the on-going potential re-alignment in the euro zone as Hollande has rejected austerity as the measure for economic growth and is calling for government support,” Raphael Agung, a currency trader at Nairobi-based Commercial Bank of Africa Ltd., said in a phone interview.
Kenya accepted 5 billion shillings ($60 million) of bids for seven-day repurchase agreements at a weighted average rate of 17.363 percent, after receiving offers totalling 6.1 billion shillings. The bank had offered 5 billion shillings of the securities, an official in the bank’s money market department who asked not to be identified citing policy, said in a phone interview today from Nairobi, the capital.
The Ugandan shilling weakened for the second day, the most in almost four weeks, depreciated 0.9 percent lower to 2,483. A close at this level will be the biggest decline since April 11.
Tanzania’s shilling gained for the third day, appreciating 0.1 percent to 1,582 against the dollar. A close at this level will be the strongest since Jan. 13, according to data compiled by Bloomberg.
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