KAMPALA-The Ugandan shilling traded in a narrow range versus the dollar in slow trade yesterday and traders said it will probably hold steady this week.
At 09:20 GMT, leading commercial banks in Kampala traded the shilling at 2,282/2,287 barely changed from 2,283/2,287, at Fridayâ€™s close.
â€œThe market is a bit quiet with nothing much happening. We have seen some (dollar) demand from the energy sector, but it hasnâ€™t impacted on the rates yet,â€ said Faisal Bukenya at Barclays Bank.
â€œWe havenâ€™t seen that much of dollar flows from non-governmental agencies probably because itâ€™s the beginning of the week. â€œWe may see the shilling holding steady if demand is subdued,â€ said Bukenya. He expected the shilling to trade in the 2,275-2,290 range over the course of this week with technical support level at 2,290.
Stanbic Bank said in a market report that it expects the shilling to hold steady in Mondayâ€™s trade, with a bias towards weakening, weighed down by dollar demand from the manufacturing and energy sectors.
Uganda shilling seen steady