Shilling weakens slightly on dollar demand resurgence

_______________

The Uganda shilling experienced a slight decline in value against the dollar during Thursday's trading session, as renewed demand for the greenback emerged following the conclusion of mid-month tax obligations by corporate.

The local currency opened trading at levels of 3870/3880 against the dollar, but closed marginally weaker at 3880/3890 by the session's end. The shilling since March 15 had benefited from tax payments.

“Dollar buyers resumed their purchases with mid-month taxes out of the way,” Catherine Kijjagulwe, head of trading at Absa, said.

The money markets were fairly liquid on Thursday with overnight yields at averages of 11.76%, Absa said. Bank of Uganda is scheduled to hold a treasury bill auction on March 27, 2024. The Uganda Bureau of Statistics is scheduled to release the March 2024 inflation data on March 28, 2024.