Kenyan Shilling Surges, Naira and Rand Face USD Pressure

Here’s this week’s overview of the Nigerian Naira, Kenyan Shilling, and South African Rand:

Nigerian Naira

The Nigerian Naira weakened by 0.35% against USD last week to trade at 1597 to the Dollar. GDP growth was higher than expected at 3.2% annualised, although it remained flat quarter over quarter. A slight decrease in foreign exchange reserves did weigh on the currency during the week along with a stronger dollar. Upcoming US rate cuts may well provide some much needed relief to the struggling currency in Q4.

Kenyan Shilling

Kenyan Shilling gained against the dollar last week to trade at 128.25 on Friday. Higher than expected inflation reduced expectations of potential rate cuts as Kenyan Shilling remains one of the best performing currencies of 2024, up over 18% against the dollar.

South African Rand

South African Rand sold off by 0.7% against the Dollar last week to trade at 17.79 on Friday. The currency, however, still hovers around its 13-month high and is over 2% up against the dollar year to date. Markets will focus on the country's second-quarter gross domestic product and manufacturing data on Tuesday for signs on the health of Africa's most industrialised economy.