NAIROBI: The Kenyan shilling weakened on Tuesday, undermined by importer demand for dollars, amid concerns that the east African country's foreign exchange earners were flagging.
At 0845 GMT, commercial banks quoted the shilling at 87.70/80 to the dollar, compared with Monday's close of 87.50/60.
Traders said there were worries about dollar inflows after official data showed leading foreign exchange earners such as horticulture exports did not do well in the first quarter.
On Monday, the statistics office said Kenya's economy grew 4.1 percent in the first quarter, slowing from 5.2 percent growth in the same period last year, due to sluggish growth in the agriculture sector and a drop in output from the hotels and restaurant sector.
"On the back of the GDP numbers it (the currency) weakened ... there are reduced inflows from the key sectors that Kenya relies on, namely floriculture, horticulture and tourism." Sheikh Mehran, senior trader at Kenya Commercial Bank, said.
Traders said the shilling was likely to trade in the 87.50-88.00 per dollar range in coming days.
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