The Kenya National Bureau of Statistics (KNBS) report has revealed that the Kenyan shilling fell against selected trading currencies in July 2024.
In its Leading Economic Indicators report released on Wednesday, September 18, KNBS has detailed that the only exception to the fall was the Tanzanian Shilling.
For instance, the exchange rate against the US dollar was recorded at Ksh129.87 in July, reflecting a modest recovery compared to the opening rates in January 2024, which stood at kSH159.69.
However, while this improvement suggests resilience or positive economic interventions, it was still a depreciation from June rates which were at Ksh129.36.
Also Read: How Kenyans in the Diaspora Are Stabilizing the Shilling
Kenyan Shilling Falling Against Other Currencies
On the other hand, for the British Pound Sterling, there was a decrease in the exchange rate, moving from 164.54 in June to 166.54 in July.
Against the Euro, the value of the Kenyan shilling decreased from 139.36 in June to 140.75 in July.
In addition, against the Japanese Yen (per 100 Yen), the Kenyan shilling saw a notable decrease, going from 82.02 in June to 82.22 in July.
Against the South African Rand, the Kenyan shilling decreased from 7.02 in June to 7.12 in July.
On the Ugandan Shilling rates, it slightly improved from 29.03 in June to 28.54 in July, and against the Tanzanian shilling, it fell from 20.23 in June to 20.53 in July.
“The Kenyan Shilling depreciated against all major selected trading currencies, with the exception of the Tanzanian Shilling, in July 2024, “
Also Read: Kenya Shilling Expected to Remain Stable Amid Currency Trends
Predictions from the London Stock Exchange
On September 12, the London Stock Exchange Group (LSEG) data quoted Kenya shilling at Ksh128.50/129.50 per dollar, compared with Ksh128.25/129.25 the previous week.
According to LSEG, the Kenya shilling is projected to maintain its stability in the month of September, despite fluctuations in other regional currencies.
Further, it noted that the shilling rallied strongly early this year as concerns eased that Kenya would default on a $2 billion (Ksh256,600,000,000) Eurobond that matured in June, but it lost momentum from April onwards.
“We’re seeing some increased (dollar) demand from oils and corporates, but generally we’re stuck within a range. … It’s likely to stay that way for the next few days,” one trader quoted in the report said.
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