Currency updates from Wednesday’s trading session

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The Uganda shilling strength was short-lived with the unit weakening again to close Wednesday’s trading session at lows of 3780/3790 from the day’s opening of 3760/3770.

The shilling weakness was driven by “pockets of interbank and corporate dollar demand, inflows were limited and quickly taken up by the dollar buyers” according to Absa traders.

The money markets were fairly liquid on Wednesday with yields at averages of 11.46%. Bank of Uganda held a treasury bill auction and yields in the 91-day, 182-day, and 364-day tenors cleared at averages of 9.846%,13.000%, and 13.503% respectively.