Business
Dollar demand weighs down shilling on Wednesday
The shilling closed the day trading at 3685 / 3695 levels compared to opening levels of 3660 / 3670.
Dollar demand weighs down shilling on Wednesday
By: Ali Twaha, Journalist @New Vision
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The Uganda shilling lost ground Wednesday, weighed down by robust demand for hard currency from local market participants and offshore investors, traders said.
Renewed tensions between the US and Iran coming out of the Middle East in recent hours added more pressure to the local unit. The shilling closed the day trading at 3685 / 3695 levels compared to opening levels of 3660 / 3670.
In the debt market, yields from Wednesday’s Treasury bill auction declined across all tenors, reflecting abundant liquidity in the money market and strong investor demand driven by the reinvestment of coupon payments and maturing securities scheduled for settlement tomorrow.
The 91-day, 182-day, and 364-day tenors declined by 50bps, 72bps, and 50bps, respectively, clearing at 10.002%, 10.400%, and 11.501%.
The Ministry of Finance accepted bids totalling sh441.8 billion in face value, representing an acceptance rate of 126%.
The 91-day, 182-day, and 364-day tenors declined by 50bps, 72bps, and 50bps, respectively, clearing at 10.002%, 10.400%, and 11.501%.
The Ministry of Finance accepted bids totalling sh441.8 billion in face value, representing an acceptance rate of 126%.