The local unit started the week on a strong footing supported by dollar inflows from commodity exporters, as corporate demand continued to lie low, a report by Richard Nsubuga, a Trader in CIB Markets department at Absa Bank Uganda said.
The shilling closed the session trading at 3700/3710 stronger than the day’s opening of 3705/3715.
Money markets were tight with overnight averaging at 11.96% while one week funds averaged at 12.05%.
Hitherto, the local unit closed the week stronger during the first week of the New Year, with support coming from commodity exporters and interbank players versus existing subdued corporate demand.
The tightness in liquidity in money markets prompted some interbank players to cut their their long positions. The shilling closed the trading at 3705 / 3715 per dollar marginally stronger than the day’s opening of 3725 / 3735.
Liquidity in the money markets was tight with overnight funds averaging at 11.63%, while 1 week trades averaged at 11.92%. There is no primary auction next week.