Kenyan Shilling Gains First Time in Six Days After Tea SaleSarah McGregor
Kenya’s shilling gained for the first time in six days against the dollar as a weekly tea auction in the world’s largest exporter of the black variety boosted supplies of the U.S. currency.
The currency of East Africa’s biggest economy climbed 0.4 percent to 85.60 per dollar by 2:10 p.m. in the capital, Nairobi, heading for its biggest advance since March 11, according to data compiled by Bloomberg.
Revenue from black tea represents Kenya’s top source of foreign exchange. The leaves are sold at an auction in the port city of Mombasa every Tuesday.
“Tea inflows from the auction yesterday are supporting the shilling,” Duncan Kinuthia, head of trading at Commercial Bank of Africa Ltd., said by phone from Nairobi.
Uganda’s shilling advanced for a third day, adding 0.4 percent to 2,595 per dollar to head for the highest close since Nov. 9. The Tanzanian currency declined 0.6 percent to 1,619.50 per dollar, its biggest drop on a closing basis in more than 10 weeks.