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UPDATE 1-Ugandan central bank says in market to sell dollars, shilling steady
June 24, 2014 / 7:33 AM / 3 years ago

UPDATE 1-Ugandan central bank says in market to sell dollars, shilling steady

(Adds details, background, quotes)
    By Elias Biryabarema
    KAMPALA, June 24 (Reuters) - The Ugandan shilling was
stable on Tuesday after the central bank said it was in the
market to sell an undisclosed amount of dollars, helping the
local currency regain some lost ground, but traders said it was
likely to remain under pressure.
    By 0637 GMT commercial banks quoted the shilling at
2,610/2,620, unchanged from its Monday close.
    The shilling had hit 2,615/2,625 against the greenback
before the central bank intervened to pump dollars into the
market and soak up the demand pressure.
    "The shilling was being undermined by multiple factors from
negative sentiment to demand (for dollars) from manufacturers
and commercial banks," said Barclays head of market making,
Faisal Bukenya.
    "BoU's (Bank of Uganda's) intervention has pushed it up a
bit but we think that's a knee-jerk reaction that could be
short-lived."
    He said the shilling was also being undermined by persistent
negative sentiment from last week's U.S. sanctions against
Uganda over the widely condemned anti-gay law.  
 
    Market players also say the shilling, which is now 3.4
percent down against the dollar this year, was also being hit by
expectations of further monetary policy easing this month. 
    
   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....... 

 (Editing by George Obulutsa and Louise Ireland)

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