Local unit extends losses in Monday’s session

The Uganda shilling extended its depreciation streak against the dollar in Monday’s session, weighed down by sustained interbank demand for the greenback.

The currency closed the day trading at 3780/3790, compared to opening levels of 3770/3780.

Traders said the ongoing geopolitical tensions in the Middle East, including renewed exchanges between the US and Iran, did little to support the local currency. End-of-month inflows from remittances and NGOs provided some liquidity but were insufficient to offset demand pressures.

In the money markets, liquidity conditions continued to improve, supported by bond maturities last week, with overnight and one-week funding rates averaging 9.75% and 9.90%, respectively, according to Absa data.