Shilling strengthens against the dollar

KAMPALA - The Ugandan shilling has strengthened against the dollar and other major currencies.

On Wednesday, the shilling was trading at 3,590.79/3,600.79 compared to Tuesday's close of 3,591.35/3,601.35 buying and selling respectively.

Ismail Sembatya, a trader along Kampala road, attributed the gain to significant inflows due to increasing number of foreigners flocking in for the forthcoming IAAF World Cross Country event due this Sunday.

"I'm hopeful that there will be high appetite for the shilling and a boom for forex services," he said.

The Uganda shilling remained flat against the dollar and was in low trading activity last week.

"This week, the shilling is likely to remain range-bound as inflows and outflows are expected to remain balanced," said Stephen Kaboyo, a financial expert and CEO of Alpha Capital Partners.

In the international currency markets, Kaboyo added that the dollar wobbled, touching a five-week low against a basket of major currencies after the US Federal Reserve delivered an interest rate hike but signaled a fewer moves going forward than what the markets expected.

In the treasury bill auction, Bank of Uganda mopped up sh165bn.

Yields dropped across all tenors with a significant drop seen in a 91-day rate. Yields were 10.732%, 12.041% and 13.824% respectively.