(Kampala) – The Uganda shilling started the trading session on Tuesday at 3662/3672 against the US dollar, but soon lost ground due to high demand, particularly from the energy sector. The currency pair quickly reached lower levels, touching 3670/3680, before recovering slightly to stabilize for most of the day at 3668/3678.
Traders reported that there were some dollar inflows from the agri-commodity sector, but these inflows were not enough to offset the stronger demand for dollars. For the second consecutive day, demand for the US dollar exceeded the inflows, putting pressure on the local currency.
By the close of the session, the USD/UGX pair was trading at 3667/3677, indicating a slight recovery from the earlier dip. Despite this recovery, money markets remained tight, with average overnight rates at 11.45%, according to Absa market data. This level of liquidity is indicative of a market under strain, with high demand for the dollar continuing to exert pressure on the Uganda shilling.
Currency Pair
Opening Rate
Lowest Rate
Closing Rate
USD/UGX
3662/3672
3670/3680
3667/3677
The outlook for the Uganda shilling remains uncertain, with traders keeping a close watch on future dollar inflows and demand trends as the market continues to navigate these pressures.
