KAMPALA: The Ugandan shilling was unchanged on Tuesday and traders said they were watching a Treasury bill auction for possible inflows that could offer support to the local currency.
At 1042 GMT commercial banks quoted the shilling at 2,605/2,615 to the dollar, unchanged from Monday's close.
"Our eyes are on what happens tomorrow at the auction," Ali Abbas, a trader at Crane Bank, said.
"Maybe if rates climb up it could produce a favourable sentiment for the shilling and push it up (strengthen it) a bit," he said.
The central Bank of Uganda will sell a total of 145 billion shillings ($55.66 million) worth of Treasury bills of various maturities on Wednesday and some traders anticipate the prevailing good debt yields will attract offshore investors.
Abbas also said despite the central bank absorbing 312 billion shillings ($119.77 million) on Monday using repurchase agreements, the market still had a lot of liquidity which would limit any potential support from the Treasury bill auction.
Faisal Bukenya, head of market making at Barclays Bank, said most players were betting on the shilling in the 2,600-2,620 range.
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