Foreign Currency

Kenyan shilling weakens on fuel, manufacturing FX demand – Markets

NAIROBI: The Kenyan shilling weakened against the dollar on Monday, under pressure from foreign-currency demand from the fuel and manufacturing sectors, and as some traders covered short positions, traders said.

At 1042 GMT, commercial banks quoted the shilling at 131.00/132.00 per dollar, compared with Friday’s close of 129.50/130.50.

“The market is now largely bid, whereas previously it was offer,” one trader said.

Kenya’s shilling gains as commercial banks cut dollar positions

The East African economy’s currency is one of the best-performing in the world this year, in a rally fuelled partly by the government resolving a large Eurobond repayment due in June which had unnerved investors.

After hitting a record low of 163.00/164.00 against the dollar in late January, the shilling is now up 20% in 2024, LSEG data show.

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