Ugandan shilling weakens, dollar demand from banks picks up

KAMPALA: The Ugandan shilling weakened on Tuesday due to increased dollar demand from commercial banks, traders said.

At 0910 GMT, commercial banks quoted the shilling at 3,460/3,470, from Monday's close of 3,440/3,450.

"Demand for dollars has picked up among commercial banks and that has triggered a bit of pressure on the shilling," said Faisal Bukenya, head of market making at Barclays Bank Uganda.

Traders broadly expect the shilling to hold steady around 3,450 in the days leading up to the presidential election on Feb.18 amid slow importer activity.