The Uganda shilling continued to come under pressure during the trading session, weighed down by sustained corporate dollar demand mainly from the energy, and manufacturing sectors.
According to Tuesday Absa Bank Uganda market report, with dollar inflows remaining insufficient to offset demand, the local unit extended its losses, weakening from levels of 3705/3715 to close at 3720/3730 at market close.
Liquidity conditions in the money market remained ample, supported by recent maturities. Consequently, overnight and one-week funds traded at average rates of 9.50% and 9.75%, respectively.
Despite the comfortable liquidity environment, the Bank of Uganda remained absent from the market, allowing market forces to determine price levels.
