Shilling holds below 3500 levels on Thursday

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The Uganda shilling held ground below the 3500 levels in a session that saw thin interbank trading activity in a narrow range of 3492-3497.

Experts observed that demand for the US dollar from the manufacturing and energy sector was seen targeting to buy the dips but was matched off, leaving the overall sentiment in favour of the shilling.

Absa traders said in a report that inflows from commodity exports and the typical end-of-month diaspora inward remittances continued to keep the local unit in the lead.

The shilling is still projected to trade range-bound with a bias towards a stronger unit targeting the 3480.

In the debt market, the market also received the maturities of sh957.1b from treasury bills. Money markets were liquid with the interbank overnight and one-week rates averaging at 9.00% and 10.25%, respectively.