Currency updates from Tuesday’s trading session

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The Ugandan shilling weakened further on Tuesday, driven by increased demand for dollars from energy companies. At the close of trading, commercial banks quoted the currency at 3,675/3,685 to the dollar, compared with opening levels of 3,670/3,680.

Money market conditions remained tight, with overnight rates averaging 11.46%, based on data from Absa. The Bank of Uganda is set to hold a treasury bill auction on Wednesday (February 26), offering a total of sh355b in bills.

In global forex markets, the British pound rebounded slightly, rising off a two-day low of 1.2605 against the dollar as the U.S. currency softened due to declining U.S. Treasury yields. The GBP/USD pair was last seen trading at 1.2669, up 0.37%.

The euro held steady near 1.0450 against the dollar as investors anticipated that the newly formed German coalition government would struggle to stimulate economic growth, according to market reports.

In cryptocurrency markets, Bitcoin and other digital currencies faced continued pressure on Tuesday following a significant hack of the Dubai-based Bybit exchange, sparking concerns about potential price suppression.

Bitcoin's value since Monday has dropped to under $88,000, its lowest level since the surge following Donald Trump’s November U.S. election victory. The cryptocurrency had previously hit record highs above $109,000 in January.