Uganda Shilling appreciates marginally

Monday May 23, 2011

The shilling appreciated against the US dollar during the week closing at 2382/87 compared to the previous close of 2390/95. “The market saw some sizeable demand for dollars but the upward momentum seems to have vanished with some inflows from NGOs supporting the shilling.

“Yields on treasuries continued their upward trend with the 91-ay, 182-day and one-year bills all jumping near 100-basis points in the mid- week auction,” Denis Mashanyu, a forex dealer at Standard Chartered Bank, said in a weekly report.

He expected the shilling to continue gaining against the dollar this week.
as end month conversions go through as well as from the interest rate perspective.

With the current interest rate regime we expect renewed offshore interest for government securities and that might increase demand for shillings. Expected trading is 2360-2395.

The New Vision Newspaper