Ugandan shilling weak against the dollar

The Ugandan shilling ceded ground on Thursday, hurt by dollar demand from commercial banks and energy importers.
At close of business, commercial banks quoted the shilling at 3,320/3,330, weaker than Wednesday’s close of 3,305/3,315.

David Bagambe, trader at Diamond Trust Bank, said the shilling had strengthened recently which prompted institutions to start covering their short dollar positions.

“That has spurred (dollar) buying pressure from commercial banks and corporates in the energy sector,” said Bagambe.
Bagambe put the shilling’s resistance and support levels at 3,300 and 3,350 per dollar.
The shilling, 16.5 percent weaker against the dollar this year, has in recent days been supported by hard currency inflows from workers abroad returning home for holidays and offshore investors buying Ugandan debt.