Kenyan shilling weakens on corporate dollar demand

Kenya's shilling lost ground in early trading on Monday, hit by global dollar strength and demand for foreign currency from telecommunications and energy firms, traders said.

At 08:17 GMT, commercial banks quoted the shilling at 105.95/106.15 to the dollar, compared Friday's close of 105.60/70. The shilling has been edging closer to its all-time low of about 107 to the dollar, set in October 2011.

"We expect further losses on the shilling," said a trader at a commercial bank, noting dollar demand from some firms.

He said the shilling was also suffering like other emerging market currencies as the dollar strengthened.

The Kenyan currency, down 16 percent this year, has come under pressure from a broad rally in the dollar, as well as Kenya's rising current account deficit and weak foreign exchange inflows from tourism after a series of attacks by Islamist militants.

Source: Reuters

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