The shilling weakened further today as interbank participants moved aggressively to cover short dollar positions amid sustained hard currency demand from corporate clients, according to Absa Bank daily updates.
Strong demand from the energy and manufacturing sectors continued to weigh on the local unit, outweighing inflows from remittances and commodity exporters. As a result, the shilling closed at 3725 / 3735, softer than the opening levels of 3715 / 3725.
Money market conditions remained liquid, with overnight rates averaging 9.53%. The Bank of Uganda stayed on the sidelines and did not conduct open market operations.
