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"(Dollar) demand has virtually dried up in the interbank market.
There's no underlying demand from businesses because of the oncoming holidays," said Shahzad Kamaluddin, a trader at Crane Bank.
The shilling has held its own against the dollar in recent days, mainly due to a seasonal rise in dollar inflows from Ugandans living abroad, amid low demand for dollars due to slowing activity at businesses ahead of the holidays.
Bank KCB Uganda said in a research note that the shilling, which is down 6.9 percent against the dollar this year, was expected "to test the 2,650 mark in the next few days."
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