The dollar firmed slightly against the yen on Monday, building on the strong gains made at the of last week after surprisingly strong U.S. jobs data lifted expectations for more aggressive Federal Reserve policy tightening, a report by Centenary Bank indicates.
Centenary Bank quoted the shilling at 3,876.13/86.13 buying and selling respectively in the first trading session on Monday.
Elsewhere, the British pound dropped as low as $1.2004 on Friday, a day after the Bank of England raised interest rates by half a point, as expected, while warning of a protracted downturn.
Hitherto, the Ugandan shilling traded stable on Friday with appetite for dollars from both interbank players and merchandise importers subdued, traders said.
Market Outlook: The shilling is forecast to remain stable against the dollar.