Kenyan Currency's Resilience Shows Cracks Amid Political Crisis
- Stocks and shilling gain as traders look past political crisis
- Currency now overvalued relative to fundamentals, Exotix says
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Kenya’s shilling weakened the most in more than six months on Monday, as warning signs started to flash for a currency that has, until now, been resilient in the face of a political crisis that shows little sign of abating.
The currency of East Africa’s biggest economy has climbed 2.1 percent this year, reaching its strongest level since June 2016 and posting five straight weeks of gains even as a basket of emerging-market currencies declined amid a global stocks selloff. The shilling fell 0.3 percent by 1:26 p.m. Monday in Nairobi to 101.10 per dollar.