KAMPALA: The Ugandan shilling was flat on Friday but traders were anticipating a slight weakening of the currency due to dollar demand from companies squaring positions before year-end. At 0918 GMT commercial banks quoted the shilling at 2,757/2,767, unchanged from Thursday's close.
"The rush to square positions and the scanty trading... is likely to tip the balance towards a bearish unit," said Stephen Kaboyo of Alpha Capital Partners. Kaboyo, however, said the market was also receiving some hard currency inflows from the exports of coffee, non-governmental organisations (NGOs) and remittances from Ugandans abroad that could cushion significant pressure.
The shilling traded largely in the first half of 2014 but came under pressure in the second half, weakened by dollar demand from importers and the strengthening dollar.
The local currency is 8.5 percent weaker to the dollar so far this year.
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