Kenya’s shilling is currently facing its 29th consecutive month of depreciation, as reported by Bloomberg. The currency has weakened approximately 18% this year, marking its largest drop in 15 years.
According to Bloomberg Economics, this significant decline is a result of the slowdown in capital inflows to Kenya, which is attributed to sluggish global funding. Additionally, the rising oil prices have put pressure on the currency, potentially widening the country’s current account deficit.
Economist Yvonne Mhango of Bloomberg predicts that the shilling could further decline to 155 by the end of the year, lower than the already record-low rate of 150.1 per dollar observed on Monday.
In contrast, Pakistan’s rupee has been a strong performer against the US dollar this year, gaining 8% from its record low in early September. The resilient performance of the currency is attributed to the Pakistani government’s crackdown on illicit dollar transactions. This positive development could provide relief to the country’s soaring inflation, which reached 31.4% in September.
HDFC Securities, an Indian lender, highlighted Pakistan’s rupee as the top performer globally this month, commending the government’s efforts to curb illegal dollar trade. Despite other currencies such as the Thai baht and South Korean won declining against the dollar due to speculation of elevated US interest rates, the rupee managed to surge almost 6% in September, showcasing its remarkable feat.
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