(Kampala) – The Uganda shilling appreciated against the US dollar over the past week, closing at 3,656/3,665 compared to the previous week’s rate of 3,660/3,670. The currency opened and closed at 3,655/3,665 on the first trading day of November, with the gains driven by remaining month-end inflows and low demand for the dollar.
According to an Absa market report, the market saw tighter liquidity conditions on Friday, which kept overnight yields at an average of 11.38%.
Further affecting market sentiment, the Bank of Uganda is scheduled to conduct a Treasury Bill auction on Wednesday, November 6, 2024. The auction is expected to influence investor sentiment and potentially impact currency stability in the coming days.
Uganda’s annual inflation rate edged down slightly to 2.9% for the year ending October 2024, compared to 3.0% in September, as reported by the Uganda Bureau of Statistics (UBOS). The reduction was primarily due to a moderation in food crop prices and related items, which showed a slight decline during the review period.
| Indicator | Current Value | Previous Value |
|---|---|---|
| Uganda Shilling (UGX/USD) Closing | 3,656/3,665 | 3,660/3,670 |
| Overnight Yields | 11.38% | Not provided |
| Inflation Rate (Annual) | 2.9% (Oct 2024) | 3.0% (Sep 2024) |
