Currency update from Monday’s session

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The Uganda shilling opened and closed Monday’s session trading at the 3475/3485 levels with intraday foreign exchange broadly seen in a narrow range.

Traders said the dollar selling interest underpinned by commodity exports and the residual end-of-month remittance flows strengthened the local unit to briefly touch the 3472/3482 levels but later corrected, on the back of demand from the manufacturing and energy sectors.

Traders still anticipate the local unit exchange rate within the 3,430 to 3,500 trading band.

The money markets remained liquid with the interbank overnight and one-week trades averaging at 9.50% and 10.17%, respectively, according to Absa market data. Bank of Uganda has scheduled a treasury bill auction this week with sh355b on offer.