How the shilling fared during the week

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KAMPALA - At the week’s close, the Uganda Shilling weakened against the US Dollar, closing at 3,805/3,815 relative to last Friday’s close 3,799/3,809.

Overall, the local unit oscillated sideways within the 3800-3815 range ahead of the weekend, with a balanced flow seen on the day according to Richard Nsubuga, trader from Absa Bank.

“Shilling tightness in the money markets also contributed to the shilling’s gains during the week. The pair is expected to continue trading range bound within the 3790 – 3850 area in the near term,” he said.

Forecasts in the currency market suggest sideways trading for the local unit as investors lock in gains awaiting the next driving force according to Stephen Kaboyo, managing director at Alpha Capital.

Overnight trades during Friday’s session averaged 12.09%, as the unit continued to witness tightness in shilling liquidity.