Uganda Shilling weakens slightly

The Uganda Shilling weakened during the end of last week as pressure from inter-bank and corporate activity gained momentum.

Market players were seen building positions ahead of the end of month. The Central Bank was active in open market operations, mopping up excess liquidity.

The shilling was trading in the range of 3380/3390 buying and selling respectively. There was no primary auction in the government securities.

In the international markets, the US Federal Reserve Bank kept its Feds fund rate unchanged, expressing confidence in the economy but not enough to make a move but teed up a likely lift at its December meeting.

Following the pronouncement, the US dollar fell against other major currencies, giving a boost to commodities priced in the US currency.

The British Pound and the Euro pulled up 0.63% and 0.51% against the dollar respectively.

"Outlook for the shilling indicates slight weakening amid expectation of a likely end month uptick in demand," Stephen Kaboyo the CEO of Alpha Capital Partners said.