Shilling surrenders some gains on Wednesday
Currency analysts at Absa say the shilling now shows signs of a potential technical pullback, suggesting a partial reversal of recent gains due to its overbought price pattern.
Shilling surrenders some gains on Wednesday
By Ali Twaha
Journalists @New Vision
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The Uganda shilling closed slightly weaker at the 3510/3520 levels, driven by increased dollar demand from commercial banks and corporates in the manufacturing sector.
Traders said players appeared to have strategically taken advantage of the dips during Wednesday afternoon trading. Earlier in the session, the local unit had stabilized around the 3500 mark but struggled to maintain its gains.
Currency analysts at Absa say the shilling now shows signs of a potential technical pullback, suggesting a partial reversal of recent gains due to its overbought price pattern.
In the debt market, the Bank of Uganda accepted sh361.5b in face value against sh355b on offer. The 364-day and 182-day treasury bills were cleared at unchanged yields of 12.254% and 13.425%, respectively. However, the 91-day tenor saw a sharp decline in the cutoff yield to 10.384%, down from 12.000% at the previous auction on August 27, 2025.