Kenya’s shilling rallied to a two-week high as investors paid for securities bought at an auction last week.
The currency of East Africa’s largest economy appreciated as much as 0.6 percent to 83.70 a dollar and was trading 0.5 percent higher at 83.60 by 3:42 p.m. in Nairobi, the strongest since July 30.
The Central Bank of Kenya sold 5.95 billion shillings ($71 million) of three-month treasury bills on Aug 9 and 4.6 billion shillings of six-month securities on Aug 8. Payment for the bids is today, the bank said on its website. The lender had offered 4 billion shillings at each sale.
“The shilling has gained on increased inflow of dollars for the payment of the treasury bills which were oversubscribed in last week’s auctions,” Jeremiah Kendagor, head of trading at Nairobi-based Kenya Commercial Bank Ltd, said in a phone interview today.
The central bank sold 3 billion shillings of seven-day repurchase agreements at a weighted average yield of 8.992 percent, a central bank official, who asked not to be named in line with policy, said today. The bank received bids of 8.22 billion shillings and didn’t accept any bids for term-auction deposits, after offering 3 billion shillings of securities, the official said.
The Tanzanian shilling advanced 0.2 percent to 1,575 to the dollar, while Uganda’s shilling gained 0.1 percent to 2,476.50 versus the U.S. currency.