Kenya’s shilling has slightly weakened against the dollar today and traders said it would
slide further, hurt by concerns about rising imports and falling tourism revenues.
The shilling exchanged at 95.30/50 to the dollar in early morning trading, slightly weaker than Thursday’s close of 95.25/35. “The trend still remains intact for a weakening shilling,”
said one trader, who asked not to be named.
Mr Chris Muiga at the National Bank of Kenya said the shilling would extend losses on concerns about the current account deficit, as a growing economy sucks in imports, and about a slump in tourist revenues after a spate of Islamist militant attacks scared off visitors.
The government has said the economy will grow by about 6.5% in 2015. The shilling has dropped by about 5.5% this year, also hurt by global dollar strength. Traders said the currency would likely test 95.50 next week, and after that head to 96 and then 98 to the dollar.
(REUTERS)
