Uganda Unit Loses Ground Against Dollar PDF Print E-mail
Written by Reuters   
Friday, 26 February 2010
The Ugandan shilling weakened against the dollar on Thursday, undermined by a general surge in demand for the US currency and traders predicted it would continue to be under pressure. Leading commercial banks in Kampala quoted the local currency at 2,035/2,040 to the dollar, from Wednesday’s close of 2,010/2,015.

The shilling is forecast to trade within the 2,025-2,040range in the coming days. “We have seen some interbank buying which has put considerable pressure on the shilling,” said Faisal Bukenya, head of marketing at Barclays Bank Uganda. Other traders said the market will watch for central bank intervention after the shilling broke through key resistance level of 2,030.

“The central bank intervened yesterday to stem the rapid depreciation of the shilling. We expect central bank to come in again today to smooth out volatility,” said another trader with another commercial bank.

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