The Uganda shilling strengthened against the US dollar in today’s trading session, supported by optimism surrounding the de-escalation of political tensions in the Middle East, according to Monday Absa Bank Uganda Market Report.
The local currency opened the week at 3740 / 3750 and appreciated to an intraday high of 3725 / 3735. However, renewed corporate demand for dollars later in the session pared some of the gains, with the shilling closing at 3735 / 3745.
In the money markets, liquidity conditions continued to improve, with overnight and one-week funding rates averaging 9.75% and 9.85%, respectively. Meanwhile, the Bank of Uganda remained active in liquidity management operations, mopping up UGX 233 billion from the market through a 3-day repo.
Bank of Uganda returns to the primary market to conduct a Treasury Bill auction where a total of Ugx 350 billion is on offer.
