Ugandan shilling weakens as demand for dollars grows

KAMPALA: The Ugandan shilling weakened on Friday amid higher demand for dollars from manufacturers and energy companies. At 0938 GMT, commercial banks quoted the shilling at 2,650/2,660, down slightly from Thursday's close of 2,540/2,650.

"The shilling has come under significant pressure from demand being exerted by manufacturing and energy firms," said Ahmed Kalule, a trader at Bank of Africa.

The shilling is down 4.9 percent against the dollar this year, and market players expect it to depreciate faster in November and December as importers getting ready for year-end shopping drive up demand for dollars.