June 21 (Bloomberg) -- Kenya’s shilling snapped a six-day rally as businesses sought to acquire dollars following the gains.
The currency of East Africa’s largest economy depreciated as much as 0.3 percent to 83.84 per dollar and was trading 0.2 percent weaker at 83.80 by 1:03 p.m. in the capital Nairobi.
“The weakening of the shilling is due to a ramp up of accumulation by businesses of dollars as they take advantage of the recent gains,” Duncan Kinuthia, a dealer at Nairobi-based Commercial Bank of Africa Ltd., said in a phone interview today. “With month-end demand expected to pick up, the shilling is expected to come under pressure.”
The Kenya shilling gained 2.2 percent in the six days through yesterday, closing at 83.60 per dollar, the highest in more than five weeks, according to data compiled by Bloomberg.
The central bank did not offer repurchase agreements and term-auction deposits for the second day today, a central bank official who asked not to be named in line with policy said. The bank reintroduced term-auction deposits as a “liquidity management” measure on June 5.
Uganda’s shilling gained 0.4 percent to 2,475 per dollar, while Tanzania’s currency appreciated by 0.1 percent to 1,580 per dollar.
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