Aug. 30 (Bloomberg) -- Kenya’s shilling weakened for a fourth day as investors await inflation data that will influence the central bank’s review of interest rates next week.
The currency of East Africa’s largest economy depreciated 0.2 percent to 84.40 a dollar by 4:56 p.m. in Nairobi, Kenya’s capital, set for the lowest since June 15.
“Investors are looking for the inflation data,” Peter Mutuku, a trader with Bank of Africa Ltd., said by phone from Nairobi. “If it goes down there will be pressure to cut rates.”
The Kenya National Bureau of Statistics releases inflation data by end of every month. Inflation slowed for an eight month in July, with the rate declining to 7.7 percent from 10.1 percent in June. The central bank is due to review policy on Sept. 5. Monetary policy makers last met in July when they cut the key lending rate for the first time in 18 months, lowering it 1.5 percentage points to 16.5 percent.
Uganda’s shilling declined for the first time in five days, falling 0.1 percent to 2,497.50 a dollar. The Tanzanian currency dropped 0.5 percent to 1,578.50, set for its biggest slump since July 23, according to data compiled by Bloomberg.
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