US dollar now ‘losing ground’

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A dollar crunch has seriously depreciated the shilling.While indicative exchange rate by the Bank of Tanzania (BoT) was capped at Sh1,682.99 on Monday, for instance, commercial banks exchanged among themselves by up to Sh1,701 per dollar, the highest since the beginning of the year, the central bank figures show.

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The dollar declined against most Asian currencies Tuesday as a little confidence returned to regional trading floors on the back of a rebound in oil prices.

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The shilling’s further tumble came as a defiant Finance minister Saada Mkuya told the House that there was nothing the government could do because all major currencies in Africa were in free fall, thanks to the stronger dollar.

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