(Kampala) – The Uganda shilling fluctuated during Wednesday’s trading session, briefly hitting the 3700 mark before closing at 3685/3695, amid strong demand from energy and telecom sectors.
The Uganda shilling opened Wednesday’s trading session at 3678/3688 but experienced fluctuations driven by market activity. At one point during the day, the local currency weakened to the 3700 mark before regaining some ground to close at 3685/3695.
Market traders attributed the shilling’s volatility to increased demand for the dollar from the energy and telecom sectors. Rahmah Masagazi, a market analyst, noted that the market also received dollar inflows from the coffee sector, although these inflows remained limited as the current coffee season is still picking up pace.
Tight liquidity conditions characterized the money markets during the day’s opening session, with overnight yields averaging 11.5%. However, government cash releases in the afternoon provided some relief, with expectations that these conditions would ease in Thursday’s trading.
| Currency Update | Details |
|---|---|
| Opening Rate (Wednesday) | UGX 3678/3688 |
| Highest Rate of the Day | UGX 3700 |
| Closing Rate (Wednesday) | UGX 3685/3695 |
| Key Demand Drivers | Energy and telecom sectors |
| Dollar Inflows | Primarily from coffee, though still minimal |
| Overnight Money Market Yields | 11.5% |
