Shilling posts marginal dollar pressure on Monday

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The Uganda shilling traded in a volatile session Monday, opening at the 3500/3510 levels. Traders said there was a gradual buying interest from offshore and local market players that saw the unit snap the 3500 barrier in the first half of the day.

Traders said local interbank trading activity pushed the local unit into an intraday losing streak, pacing to the lower levels 3530/3540.  The local unit closed at 3515/3525 against the dollar.

“US dollar sellers were attracted by the currency pair spike, who actively sold dollar into the spot market and correcting the trend towards the close of the day,” Richard Nsubuga, a market analyst, said. 

The money markets liquidity remained tight according to Absa market data, with the interbank overnight and one-week trades averaging at 9.23% and 10.19%, respectively.