July 24 (Bloomberg) -- Kenya’s shilling weakened for a third day on increased dollar demand from local companies seeking to pay monthly bills.
The currency of East Africa’s biggest economy weakened 0.1 percent to 84.35 a dollar by 11 a.m. in Nairobi, the capital. A close at that level would be the weakest since June 28, according to data compiled by Bloomberg.
“There is some end-month demand coming in from the energy sector and corporates though I don’t see the shilling going beyond 84.50 because there are proceeds coming in from the tea sector,” Sameer Lagadia, head of trading at Nairobi-based Diamond Trust Bank Kenya Ltd., said in a phone interview today.
Kenya Petroleum Refineries Ltd., the East African nation’s only oil processor, said yesterday it took the first delivery of crude since it began sourcing fuel to process and sell refined products to retailers.
African tea prices rose to an average of $2.98 a kilogram (2.2 pounds) at the last weekly sale in Mombasa, Kenya, Tea Brokers East Africa Ltd. said July 17. Prices increased from $2.92 a week earlier. Kenya is the world’s biggest producer of black tea, the main foreign-exchange earner in east Africa’s largest economy.
Uganda’s shilling declined for a second day and was trading 0.1 percent weaker at 2,477.50 a dollar. Tanzania’s currency gained the most in almost a month, rising 0.5 percent to 1,583.
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