Ugandan shilling steady, supported by weak dollar demand

KAMPALA Tue Jan 14, 2014 8:52am EST

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KAMPALA Jan 14 (Reuters) - Weak corporate demand for hard currency kept Uganda's shilling steady on Tuesday and traders expected it to trade in a narrow range in the days ahead.

Commercial banks quoted the currency of east Africa's third-largest economy at 2,510/2,515 to the dollar at 1127 GMT, unchanged from Monday's close.

"Appetite (for dollars) from corporate clients is flat which has allowed the local unit to maintain stability," said Ahmed Kalule, trader at Bank of Africa. "As long as corporate demand stays out we'll continue to trade in a narrow range."

Traders have previously attributed low corporate demand to the slow pick-up of business activity after holidays.

Kalule said the shilling was being supported by recent central bank mop-ups of excess local currency liquidity.

But analysts said a conflict in South Sudan, an important export market, clouded the longer term outlook.

Faisal Bukenya, head of market making at Barclays Bank, said the shilling would likely move in a range of 2,505-2,515 in the comings days and could face some pressure after that as foreign-owned firms seek hard currency for dividend payments.

UGX Spot Rate.....

Ugandan Shilling Money Guide....

Calculated Cross Rates..........

Deposits.....................

Deposits & Forwards.............

Uganda Equities Guide.......

Uganda All Share Index........

Shilling background .....

Ugandan Debt Guide............

All Uganda Bonds.............

Uganda T-Bills..............

Uganda Benchmark.............

Central Bank ................

Ugandan Contributor Index....

Uganda Coffee Prices....... (Writing by Edmund Blair; Editing by Pravin Char)

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