Shilling strengthens marginally against the dollar

The Uganda Shilling closed the week strengthening marginally against the dollar.

This due to Bank of Uganda mopping up of excess liquidity in the money markets amidst low demand for the greenback.

Trading was in range of Shs 3610/3620.

In the region, the Kenya shilling was stable but is expected to weaken on account of increased importer dollar demand. Trading range was Kshs 102.70/95

According to Stephen Kaboyo of money market watchers Apha Capital, the shilling is likely to trade strong and could test the support level of 3600.

Kaboyo said seasonal inflows will play a significant factor in keeping the shilling rally, coupled with  a slowdown of market demand as the holidays get closer.

He said Bank of Uganda open market operations will also be key in supporting the shilling.


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