Monday, 06 August 2012 17:03
KAMPALA: The Ugandan shilling edged up against the dollar on Monday due to lower demand for the greenback and traders expected it to weaken in the medium to long term as a monetary policy easing cycle makes locally-issued debt less attractive.
At 0924 GMT, commercial banks quoted the currency of east Africa's third largest economy at 2,478/2,488, slightly up from Friday's close of 2,483/2,493.
"We are not seeing any serious demand coming through particularly from the corporate sector and that's keeping the shilling supported for now," said Christopher Makombe, trader at Standard Chartered Bank in Nairobi.
The shilling could however come under pressure from the dollar in the weeks ahead after the central bank loosened its monetary policy for a third consecutive time, trimming 200 basis points off its policy rate to 17 percent last week.
"CBR (Central Bank Rate) has been cut significantly which points us to a weaker shilling in the medium ...