The Kenyan Shilling managed to recover its losses on Wednesday, rising for a second consecutive day after Kenyan security forces declared an end to the four-day long siege by Islamic terrorists in a Nairobi shopping mall.
As the attack unfurled the currency fell as investors moved their assets to safe havens. The atrocity which resulted in 61 people dead (the death toll is likely to rise) came to a close as police and security forces finally secured the shopping complex in the Kenyan capital. Five of the terrorists were killed, eleven suspects captured and six security officers died in the assault to free hostages.
“It will hit investor confidence but having said that the areas which are most likely to be impacted are tourism and in the shorter-term consumer goods,” said Joseph Rohm, a portfolio manager of African equity portfolios at Investec Asset Management.
“People are likely to stay away from the malls for a week or two, but the long-term structural story – the growth, regional integration, political achievements – investors recognise those and an event like this is unlikely to change those views.”
The Shilling was also supported as the market prepared for a 12-year infrastructure bond auction which was expected to see foreign traders bid for up to 10 to 15% of 20 billion Shillings in debt available. Tight liquidity due to tax payments by companies to the government last week helped the shilling withstand jitters as a result of the terrorist atrocity.
“The shilling might continue strengthening due to the tight liquidity and also (dollar) inflows expected after the auction,” said John Muli, a trader at African Banking Corporation.
Kenyan Shilling (KES) Exchange Rates
As of 12:30 pm GMT
The Kenyan Shilling/US Dollar Exchange Rate is currently in the region of: 0.0114
The Kenyan Shilling /Pound Sterling Exchange Rate is currently in the region of: 0.0071
The Kenyan Shilling /Australian Dollar Exchange Rate is currently in the region of: 0.0122
The Kenyan Shilling / New Zealand Dollar Exchange Rate is currently in the region of: 0.0139
The Kenyan Shilling / Canadian Dollar Exchange Rate is currently in the region of: 0.0118
The Kenyan Shilling/ Euro Exchange Rate is currently in the region of: 0.0085
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