The Uganda shilling extended its losses against the dollar in today’s trading session, pressured by strong greenback demand from the energy, manufacturing, and telecommunications sectors, according to Thursday Absa Market Report.
The demand outweighed the limited dollar inflows from commodity exports, remittances, and non-profit organizations. The local unit opened the day trading at 3735 / 3745 and came under sustained pressure throughout the session, eventually closing weaker at 3755 / 3765.
In the money markets, liquidity conditions continued to improve, with overnight and one-week rates averaging 9.75% and 9.85%, respectively. The Bank of Uganda was active in the market today, mopping up approximately Ugx 1 trillion through the 7-day mop up repo.
