The Kenya shilling dipped a little to KSh81:US$1 in January 2011, from KSh80.7:US$1 in December, to be 7% weaker than a year earlier. A second consecutive month of decline (after a few months of relative stability) reflects worries about euro-zone debts, a worsening drought (which may dent tea exports) and rising inflation. The shilling will nevertheless be supported by positive sentiment towards emerging markets and continued backing from donors, including the recent release of fresh IMF funds to bolster foreign-exchange reserves. The shilling, after averaging KSh79.17:U$1 in 2010, will continue on a path of gradual depreciation, sliding to KSh81.8:US$1 in 2011 and KSh83.5:US$1 in 2012, owing to the current-account deficit and higher inflation than in key trading partners. The currency will find some stability in 2013-15, around the KSh85-86:US$1 mark, helped by a stronger trade performance, although more rapid depreciation is likely if political or economic confidence slips.