Business
Shilling slips on dollar demand from corporate companies
Traders said the local unit was under mild pressure for most of the session but clawed back some ground as trading wound down towards market close.
Shilling slips on dollar demand from corporate companies
By: Ali Twaha, Journalist @New Vision
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The Uganda shilling weakened slightly against the US dollar on Wednesday, closing at 3775/3785 from an opening of 3770/3780, as corporate demand for hard currency edged out available supply on the local market.
Traders said the local unit was under mild pressure for most of the session but clawed back some ground as trading wound down towards market close.
Traders said the local unit was under mild pressure for most of the session but clawed back some ground as trading wound down towards market close.
In the money markets, liquidity remained ample, according to an Absa report, with overnight and one-week funding rates averaging 9.75% and 9.90% respectively.
In the debt market, at the Treasury bill auction, yields eased on the shorter tenors while the 364-day paper held steady. The 91-day and 182-day bills cleared at 9.749% and 9.999%, respectively, largely in line with market expectations and down 25.3 basis points and 25 basis points from the previous auction. The 364-day bill was unchanged at 10.999%.
In the debt market, at the Treasury bill auction, yields eased on the shorter tenors while the 364-day paper held steady. The 91-day and 182-day bills cleared at 9.749% and 9.999%, respectively, largely in line with market expectations and down 25.3 basis points and 25 basis points from the previous auction. The 364-day bill was unchanged at 10.999%.