Currency update from Thursday’s session
The local unit opened and closed at the 3560/3570 levels.
The shilling is anticipated to consolidate within the extended trading range of 3550 -3620, with an overall bias towards a stronger unit in the near term. (File photo)
By Ali Twaha
Journalists @New Vision
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The Uganda shilling held onto the intra-week gains against the US dollar amid mild trading activity and the treasury bond settlements on Thursday.
The local unit opened and closed at the 3560/3570 levels.
The morning session saw some repositioning trades as market players seemed to shift the focus off the impact of the treasury bond auction that performed below market expectations and downplayed the extent of offshore investors participating in the foreign exchange market.
The shilling is anticipated to consolidate within the extended trading range of 3550 -3620, with an overall bias towards a stronger unit in the near term.
Money markets were excessively liquid during the day according to Absa data, opening with an expected reserve position of sh110.9b and over sh1.024 trillion anticipated in repo and Bank of Uganda Bill maturities, which prompted the central bank to mop up sh910 billion via a 7-Day repo.The overnight and one-week funding trades averaged at 9.80% and 10.16%, respectively.
Bank of Uganda has scheduled a treasury bill auction next week on Aug 13, 2025, with sh355b on offer.