Kenyan shilling eases on FX demand from oil firms, manufacturers

Kitco Media
By Reuters
Published:
Updated:
Reuters
NAIROBI, March 14 (Reuters) - The Kenyan shilling eased against the dollar on Tuesday as foreign-currency demand from oil marketers and manufacturers outstripped supply from the tourism sector, traders said. At 0845 GMT, commercial banks quoted the shilling at 129.40/60 per dollar, compared with Monday's closing rate of 129.20/40. Refinitiv data showed the shilling hit a record low of 129.80/130.00 on Tuesday before reversing some of its losses. Kenya has signed deals with UAE's ADNOC and Saudi Aramco for the supply of petroleum products with a six-month credit period, a move designed to curb demand for dollars that has contributed to the local currency weakening more than 4.8% since the start of the year. Foreign-currency traders have cast doubt on the ability of the plan to stem pressure on the shilling, saying it merely amounts to a postponement of demand. (Reporting by Hereward Holland Editing by Alexander Winning)

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