The Uganda shilling traded on a weaker footing against the US dollar in today’s session, depreciating from opening levels of 3730 / 3740 to close at 3745 / 3755, according to Thursday Absa Ban Uganda Market Report.
The decline was driven by strong interbank dollar demand, largely influenced by heightened geopolitical tensions in the Middle East following fresh US military strikes on Iran overnight.
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 667 billion from the market through their Open Market Operations tools.
