Kenya Shilling Takes a Beating as Demand for Dollars Surges
(Bloomberg) -- The Kenyan shilling weakened 0.3 percent against the dollar to 102.15, its lowest in a week, after strong appetite for the greenback and patchy foreign-currency inflows, Nairobi-based Commercial Bank of Africa said.
The currency will remain in a narrow band against the dollar in the absence of fresh stimulus, the lender said in an emailed note.
- Shilling is still Africa’s best performing currency having added 1.21% this year. The currency shed 1.08% since end-October, and has erased more than 50% of gains since January.
- 50-day average crossed the 200-day average, commonly referred to as a death cross, signaling that further weakness in store for the shilling.
- “We expect the shilling to claw back ground as imports reduce and diaspora remittances peak,” Nairobi-based investment bank Genghis Capital said in emailed note.
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