Business
Shilling extends losses on Tuesday
Money market liquidity remained constrained during the session, according to Absa, keeping funding rates elevated at an average of 10.75%.
Traders said the sustained pressure continued from strong dollar demand from corporate players, with offshore investors being particularly active as they unwind local bond holdings in favour of safe haven assets.
By: Ali Twaha, Journalist @New Vision
KAMPALA - The Uganda shilling extended its depreciation against the dollar in Tuesday’s session, weakening from opening levels of 4020 / 4030 to close at 4045 / 4055.
Traders said the sustained pressure continued from strong dollar demand from corporate players, with offshore investors being particularly active as they unwind local bond holdings in favour of safe haven assets.
On the supply side, Ronald Nsubuga, a market analyst, said dollar inflows remained limited and were insufficient to match the strong demand, keeping the soft shilling under pressure throughout the session.
Money market liquidity remained constrained during the session, according to Absa, keeping funding rates elevated at an average of 10.75%.
The central bank remained on the sidelines, with no intervention in the market.
Bank of Uganda will conduct a treasury bond auction on October 7 where the benchmark 3-year, 10-year and 20-year maturities will be reopened.
The central bank remained on the sidelines, with no intervention in the market.
Bank of Uganda will conduct a treasury bond auction on October 7 where the benchmark 3-year, 10-year and 20-year maturities will be reopened.