- Kenya's shilling is on pace for its 29th consecutive month of declines, per Bloomberg.
- In 2023, it's weakened about 18%, it's largest drop in 15 years.
Kenya's shilling is on pace for its 29th consecutive month of depreciation, according to Bloomberg data.
So far this year, the currency has weakened roughly 18%, and looks poised to notch its biggest annual decline since 2008.
According to Bloomberg Economics, the sharp drop-off reflects the slowdown in capital inflows to the African nation, stemming from sluggish global funding. What's more, climbing oil prices pressure the currency as well, as it likely widens the country's current account deficit.
"We could see the shilling at 155 at year-end," Bloomberg conomist Yvonne Mhango said, even lower from the 150.1 per dollar seen Monday, which is already near a record low.
Moving in the opposite direction this year has been Pakistan's rupee. It has been a top performer against the dollar this year, and has gained 8% from a record low in early September.
The recent strength, according to Indian lender HDFC Securities, comes from the Pakistani government's crackdown on illicit dollar transactions, and it could bring some relief to soaring inflation in the country, which hit 31.4% in September.
"Pakistan's rupee was the top performer globally this month as a government crackdown on the illegal dollar trade helped reverse its fortunes," the firm said in a presentation last week. "The rupee surged almost 6% in September, a remarkable feat as most currencies including the Thai baht and South Korean won tumbled against the dollar on speculation US interest-rates will stay elevated for longer."