Business
Dollar extends gains against shilling on Wednesday
Traders noted that pressure on the local unit came from offshore investors actively purchasing the greenback while reducing portions of their holdings in government securities.
The shilling weakened from opening levels of 3720/3730 to an intraday low of 3745/3755 before recovering part of its losses and settling around 3735/3745 by the close of the session.
By: Ali Twaha, Journalist @New Vision
KAMPALA - The Uganda Shilling extended its depreciation against the dollar in Wednesday’s session due to sustained corporate demand as business activity continues to gather pace at the start of the new fiscal year.
The shilling weakened from opening levels of 3720/3730 to an intraday low of 3745/3755 before recovering part of its losses and settling around 3735/3745 by the close of the session.
Traders noted that pressure on the local unit came from offshore investors actively purchasing the greenback while reducing portions of their holdings in government securities.
A report from Absa noted that: “A slowdown in foreign currency inflows offered limited support to the local unit, further skewing market dynamics in favour of the greenback.”
Liquidity in the interbank market continued to improve following recent government fund releases. Absa reported that overnight and one-week money traded at average rates of 9.50% and 9.75%, respectively.
A report from Absa noted that: “A slowdown in foreign currency inflows offered limited support to the local unit, further skewing market dynamics in favour of the greenback.”
Liquidity in the interbank market continued to improve following recent government fund releases. Absa reported that overnight and one-week money traded at average rates of 9.50% and 9.75%, respectively.