KAMPALA – The Uganda shilling experienced volatility during Tuesday’s trading session but managed to stay within a narrow range. The day began with the shilling trading at levels of 3705/3715 and ended slightly stronger at 3697/3707.
Forex traders observed that there was limited demand for the dollar throughout the day. Meanwhile, there were steady inflows from commodity exporters and remittance firms, which contributed to the currency’s slight strengthening by the close of trading.
Money markets were characterized by tight liquidity conditions. According to Absa, overnight yields averaged 10.28%, reflecting the strained liquidity situation.
Looking ahead, the Bank of Uganda is set to hold a treasury bill auction on July 3. This auction will be closely watched by market participants as it may impact liquidity and influence future movements of the Uganda shilling.
