Dollar opens week stronger against shilling

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The dollar opened the week stronger, continuing its winning streak against the Uganda shilling, closing at 3602/3612 compared to the opening levels of 3578 / 3588.

Traders said the depreciation of the shilling was mainly driven by strong buying interest from offshore investors and clients playing in the energy and manufacturing sectors.

“As markets countdown to closure, it is expected that there will be position squaring and closing out as traders strategise to avoid potential end-of-year disruptions. It is typical at this time of the year for markets to realign in anticipation of reduced activity and minimise potential gapping as markets reopen for 2026,” Stephen Kaboyo, managing director at Alpha Capital, said.

Money markets remained tight according to Absa market report, with interbank overnight and one-week rates averaging 10.63% and 11.12%, respectively.