Uganda Shilling posts more gains against dollar

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The Uganda shilling posted a marginal gain against the US dollar on Monday, closing at 3442/3452 from an opening level of 3450/3460.

Market observers noted that the appreciation was supported by positive market sentiment towards the shilling, bolstered by dollar inflows from portfolio investors, residual end-of-month diaspora remittances, and proceeds from commodity exports.

In the near term, the shilling is expected to remain range-bound, with a bias towards consolidation, within a revised trading band of 3430–3485.

Money markets remained liquid, according to Absa, despite an anticipated shortfall in the overall market reserve position at the start of the day’s session.

Interbank overnight and one-week rates averaged 9.93% and 10.00%, respectively. The market is also expecting maturities totalling sh1.452 trillion from repos, Bank of Uganda Bills, and Treasury Bills.