KAMPALA: The Ugandan shilling inched down on Friday due to demand for dollars from companies in the energy sector, and traders said it had a stable outlook after the central bank held its key lending rate.
At 1203 GMT, commercial banks quoted the shilling at 2,765/2,775, compared with Thursday's close of 2,760/2,770.
"The market has seen significant demand from energy sector firms," said Faisal Bukenya, head of market making at Barclays Bank.
The shilling is down 8.8 percent this year.
A trader from a leading commercial bank said it should trade on a stable footing in the medium term after the central bank kept its benchmark lending rate unchanged on Friday.
"This neutral stance will yield some reassurance for the market.
We should see some stability going forward," the trader said.
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