Kenyan Shilling Strengthens on Businesses’ Subdued Dollar Demand
Kenya’s shilling strengthened to the highest in a week on subdued dollar demand by businesses.
The currency of East Africa’s largest economy appreciated as much as 0.2 percent to 83.85 per dollar and last traded less than 0.1 percent up at 84, the highest since July 12, according to data compiled by Bloomberg.
“The Kenyan shilling will rise slightly against U.S. dollar as we expect demand and supply being evenly matched,” Nairobi-based NIC Bank Ltd. (NICB) said in a note to clients today. The currency would trade at about 83.90 to 84.30, the bank said.
The Central Bank of Kenya stayed out of the money market today, according to an official, who asked not to be identified in line with policy. This is the first day since June 27 the bank hasn’t offered repurchase agreements or term-auction deposits to curb money supply.
Uganda’s shilling weakened 0.2 percent to close at 2,467.49 per dollar, while the Tanzanian shilling was unchanged at 1,585 per dollar.
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