Shilling Maintains Rise Against Dollar

The Ugandan shilling traded n a relatively stable mode during the week ending October 21, 2013 keeping within the range of Ushs 2515/2525 to the dollar on the back of low demand.

“The shilling firmed against the dollar in Monday’s trading mainly due to low demand for dollars from the corporate sector,” said Catherine Jamwa, the Centenary Bank Chief Manager Treasury.

The low demand has been attributed partly to the tight monetary policy stance by the BOU and the weakening of the dollar against all major currencies after the US government budget shutdown.

By close of business on Monday, Commercial banks quoted 2,515/25 same as Friday’s close.

At Standard Charted Bank, the Financial Markets Team said, ” The Uganda  Shilling is likely to be range bound over the next week but could potentially weaken as buoyant economic growth fuels expectations of a surge in dollar demand”. 

Market Outlook:

“The shilling is expected to firm further this week as dollar demand remains weak,” predicts Jamwa.

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