Ugandan shilling extends losses on dollar demand from fuel importers

KAMPALA: The Ugandan shilling weakened for a third day running on Tuesday, kept under pressure from demand for dollars from fuel importers.

At 0911 GMT, commercial banks quoted the currency at 2,610/2,620, down from Tuesday's close of 2,600/2,610.

"Fuel importers are in the market buying a lot of dollars," said Sage Muganza Daniel, trader at Centenary Bank.

"I think some of them are panicking that the shilling will weaken a bit more sharply so they don't want to be caught short."

The shilling's losses could be capped by the central bank's cautious monetary stance, some money market analysts say. The bank held its key lending rate at 12 percent this month, citing inflation risks.