Uganda shilling stable, pressure seen from rate cut

KAMPALA: The Ugandan shilling was unchanged on Tuesday although traders expected some depreciation due increased dollar demand after the central bank cut its key lending rate by a percentage point to 16 percent.

At 0924 GMT commercial banks quoted the shilling at 3,360/3,370, unchanged from Monday.

"The shilling is likely to react by weakening. The action is plenty to signal that the authorities still have eyes on growth," Stephen Kaboyo, managing director of Alpha Capital Partners, said.