Shilling shaken by surge in dollar demand

The Ugandan shilling edged down on Wednesday, undercut by demand for hard currency from players in the interbank market looking to beef up their positions, a report by Centenary Bank said.

Centenary Bank quoted the exchange rate at Ugx3710/3850 buying and selling respectively against the dollar on Thursday 18th August 2022.  

“The dollar was on the front foot on Thursday after minutes from the Federal Reserve’s July meeting pointed to U.S. interest rates staying higher for longer to bring down inflation,” Centenary Bank said.

The euro bought $1.0165 and the dollar index rose 0.1% to 106.740.

The British pound weakened on Wednesday as data showed inflation climbed to its highest level in more than four decades in July, heaping pressure on the Bank of England to bring down prices but increasing the risk of a sharper economic slowdown.

Market Outlook: The shilling is forecast to weaken against the dollar.

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