The Uganda shilling strengthened against the US dollar in today’s trading session, supported by subdued greenback demand from most corporate players, according to Absa Bank Uganda’s Wednesday market report.
According to the report, the local currency also benefited from continued inflows from remittances and the commodities sector, closing at 3720/3730 compared to the previous session’s close of 3725 / 3735.
Liquidity conditions in the money markets improved further, aided by government releases yesterday. Consequently, average overnight and one-week lending rates eased to 9.75% and 10.00%, respectively although the central bank refrained from any open market operations.
