NAIROBI: The Kenyan shilling fell against the dollar in early trading after suspected al Shabaab militants from neighbouring Somalia attacked a quarry near the border killing 36 people.
The shilling fell to 90.30/40 at the start of trading from the previous day's close of 90.20/30 as news of the overnight attack broke out.
Kenya has suffered a string of gun and grenade attacks since it sent troops into Somalia to fight al Shabaab in late 2011.
The attacks have hit the east African nation's tourism industry, putting pressure on the shilling because tourism is a key source of foreign exchange.
Gunmen raided Korome quarry overnight while workers were sleeping in tents near Mandera town, close to where Islamist militants shot dead about 28 non-Muslims on a bus last month.
"People thought it is bad news for the currency but we have seen it correcting back to 90.15/25," said John Njenga, a trader at Commercial Bank of Africa.
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