At 0919 GMT commercial banks in Kampala quoted the currency of east Africa's third largest economy at 2,475/2,485 per dollar, slightly weaker than Friday's close of 2,470/2,480.

"The week's outlook suggests the shilling is likely to remain stable because we're not having much demand from the corporate sector," said Eric Lukwiya, trader at Fina Bank.

Analysts say the shilling could come under pressure from the dollar in the medium term as credit expands on the back of falling inflation and interest rates.

Year-on-year inflation edged down to 18.0 percent in June from May's 18.6 percent, thanks to easing food prices.

"The shilling will remain in the 2,470-2,490 range this week, the main market driver being weak demand from corporate firms," said Brenda Akumu, a trader at KCB Uganda.