The Uganda shilling came under depreciation pressure during today’s session, driven primarily by resurgent dollar demand from local corporates, according to the Absa Bank Market Report.
At the same time, subdued dollar inflows provided limited support to the local unit, further weighing on its performance. The currency opened trading at 3650 / 3670 and weakened to close at 3680 / 3690 against the dollar.
In the money markets, liquidity conditions continued to improve, largely supported by government fiscal releases with overnight and one-week rates averaging 9.75% and 10.00% respectively. The Bank of Uganda mopped up UGX 273.9 billion through a 2-day repo.
