Shilling edges lower
Apr 17, 2006
The Uganda shilling lost ground against the US dollar on account of increased corporate demand and inter-bank activity in the week to Thursday, dealers said.
By Vision Reporter
The Uganda shilling lost ground against the US dollar on account of increased corporate demand and inter-bank activity in the week to Thursday, dealers said.
The shilling closed the week at 1,825/1,830 per dollar compared to last week’s 1,821/1,826. Markets were closed to mark the Good Friday holiday.
“Many corporates mainly from oil and the communications sector were seen in full demand for dollars below the 1,825 level. This put pressure on the shilling hence a depreciation to 1,825/30,†Joram Ssozi, the chief dealer at Standard Chartered Bank, said.
Dealers said the shilling was under pressure in the week as banks jumped into the market to square positions.
Ssozi forecast that the local unit would weaken further in the absence of central bank intervention.
“The shilling is expected to depreciate further after Easter. Unless Bank of Uganda intervenes to slow down or limit the rate of depreciation or corporates move out of the market, 1,830 will hold,†he said.
Ends
The Uganda shilling lost ground against the US dollar on account of increased corporate demand and inter-bank activity in the week to Thursday, dealers said.
The shilling closed the week at 1,825/1,830 per dollar compared to last week’s 1,821/1,826. Markets were closed to mark the Good Friday holiday.
“Many corporates mainly from oil and the communications sector were seen in full demand for dollars below the 1,825 level. This put pressure on the shilling hence a depreciation to 1,825/30,†Joram Ssozi, the chief dealer at Standard Chartered Bank, said.
Dealers said the shilling was under pressure in the week as banks jumped into the market to square positions.
Ssozi forecast that the local unit would weaken further in the absence of central bank intervention.
“The shilling is expected to depreciate further after Easter. Unless Bank of Uganda intervenes to slow down or limit the rate of depreciation or corporates move out of the market, 1,830 will hold,†he said.
Ends