Kenyan Shillings Slumps Further To Its Lowest On Wednesday

The shilling has shed 5.83 percent since March 13 when Kenya reported its first Covid-19 case and has breached forecasts of the local currency hitting a low of Sh107 against the dollar due to the pandemic according to stats on the Business Daily.

On Tuesday, the local currency closed the day at 107.9 to the US Dollar, a drop that was attributed to the end of month dollar demand. Companies have increased demand for dollars as foreign reserves decline.

According to data compiled by Bloomberg, a drop closer at that level would be lowest the Kenyan shilling has ever dropped since December 1988. Analysts say the shilling is likely to have some leeway at the beginning of August.

Last week, the Kenya Shilling depreciated by 0.5 percent against the US Dollar to close the week at 107.5 shillings from 106.9 shillings, recorded the previous week.

The slight depreciation was attributable to increased dollar demands from importers as global economies continued easing movement restrictions.

On a YTD basis, the shilling has depreciated by 6.0 percent against the dollar, in comparison to the 0.5 percent appreciation in 2019.

READ: Kenyan Shilling Slumps To An All-Time Low On Tuesday