The Uganda shilling came under depreciation pressure against the US dollar during the early trading session, weakening from 3680/3690 to an intraday low of 3695/3705 before recovering to close at 3685/3695.
This was according to Absa Bank’s Monday market report. The move was largely driven by strong demand from interbank market participants. However, steady commodity inflows provided support to the local currency, helping to contain further downside pressure.
In the money markets, liquidity remains abundant following the recent coupon and bond maturity redemptions. Overnight and one-week funding rates averaged 9.75% and 9.95%, respectively. The Bank of Uganda remained active in managing excess liquidity mopping up UGX 263.5 billion through the 3-Day REPO.
