Kenya’s shilling appreciated the most in more than a week as investors prepared to pay for bids of treasury bonds.
The currency of East Africa’s biggest economy gained as much as 0.3 percent to 87.35 per dollar and traded 0.1 percent stronger at 87.50 per dollar by 11:28 a.m. in Nairobi, the most since Feb 11 on a closing basis, according to data compiled by Bloomberg.
The Central Bank of Kenya sold 25.5 billion shillings ($291 million) of two-year and 15-year treasury bonds at an auction on Feb. 20, more than the 15 billion shillings offered, after receiving bids of 44.8 billion shillings, the bank said in an e-mailed statement. Payment is to be made on Feb. 25, according to the bank website.
“The shilling has received support from investors preparing to pay for their successful bids of treasury bonds through increase inflow of dollars,” Jeremiah Kendagor, head of trading at Nairobi-based Kenya Commercial Bank Ltd., said today. “There is minimal demand for dollars in the market”.
The shilling will trade around 87.30 to 87.80 per dollar, Nairobi-based NIC Bank Ltd. said in a note today.
Kenya will hold its presidential vote on March 4, the first since a disputed 2007 ballot sparked two months of violence in which more than 1,100 people died. The currency may decline to 89 a dollar by voting day, according to a Bloomberg News survey of analysts and traders last month.
Uganda’s currency snapped a 5-day losing streak, gaining 0.8 percent to 2,688 per dollar, the most since Dec. 24, according to data compiled by Bloomberg. The Tanzanian shilling fell for the third day, weakening 0.6 percent to 1,637 per dollar, the lowest since December 2011, according to data compiled by Bloomberg.