Weekly Wrap: Shilling slips slightly against the Dollar

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At the close of the trading week, the Ugandan shilling saw a slight depreciation against the US Dollar, settling at 3,810/3,820 compared to the previous Friday’s close of 3,805/3,815.

By close of Friday’s session, the local currency wrapped up the week trading at levels of 3810/3820, showing marginal weakness from the day’s opening levels of 3800/3810.

“The currency is still likely to continue trading within a narrow bank in the short term as we come to the end of the month inflows are still likely to remain healthy, there is still some demand expected to cover some dividend payments between now and June that is also likely to keep the unit within the 3800 -3880 levels,” Catherine Kijjaggulwe, head of trading at Absa, said.  

Market participants encountered tight liquidity conditions on Friday, with overnight yields averaging at 11.22%. Looking ahead, the Uganda Bureau of Statistics is slated to release the April inflation data on April 30, 2024.