Business
Shilling extends losses against dollar in Tuesday's session
Liquidity conditions in the money market remained ample, supported by quarter-end government releases.
Shilling extends losses against dollar in Tuesday's session
By: Ali Twaha, Journalist @New Vision
KAMPALA - The Uganda shilling extended its depreciation trend against the dollar in Tuesday's session closing at 3700/3710, compared to opening levels of 3685/3695.
Traders linked the shilling weakness to strong dollar demand from corporates and offshore investors, largely stemming from heightened geopolitical tensions in the Middle East.
The demand, according to Richard Nsubuga, a market analyst at Absa, reportedly outweighed the available dollar supply in the market, exerting downward pressure on the local currency.
Liquidity conditions in the money market remained ample, supported by quarter-end government releases.
Overnight and one-week money market rates averaged 9.75% and 9.95%, respectively. The Bank of Uganda continued to actively manage excess liquidity through a 2-day repo mop-up operation.
Liquidity conditions in the money market remained ample, supported by quarter-end government releases.
Overnight and one-week money market rates averaged 9.75% and 9.95%, respectively. The Bank of Uganda continued to actively manage excess liquidity through a 2-day repo mop-up operation.