Shilling remains weak against foreign currencies
Sep 27, 2011
KAMPALA-The shilling slipped against the dollar on Monday, undermined by end-of-month greenback demand and the euro zone’s continuing debt woes.
KAMPALA-The shilling slipped against the dollar on Monday, undermined by end-of-month greenback demand and the euro zone’s continuing debt woes.
Traders said the local currency would likely breach the key level of 2,900 again this week. Last week, the shilling recorded new lows before the Central Bank sold dollars to claw back some of its losses.
The shilling traded at an all-time record low of 2,901 last Friday.
Commercial banks in Kampala quoted the unit at 2,875/2,880, slightly weaker than Friday’s close of 2,860/2,870.
“End of month (dollar) demand is currently driving the market but the shilling is also echoing developments in the euro zone,†said Dickson Musone, manager of treasury and sales, KCB Uganda.
Traders said the local currency would likely breach the key level of 2,900 again this week. Last week, the shilling recorded new lows before the Central Bank sold dollars to claw back some of its losses.
The shilling traded at an all-time record low of 2,901 last Friday.
Commercial banks in Kampala quoted the unit at 2,875/2,880, slightly weaker than Friday’s close of 2,860/2,870.
“End of month (dollar) demand is currently driving the market but the shilling is also echoing developments in the euro zone,†said Dickson Musone, manager of treasury and sales, KCB Uganda.