The Ugandan shilling kicked off the trading week on a positive note, displaying resilience as it made significant gains against the US dollar.

At the beginning of the week, the currency opened at the 3735/3745 exchange rate against the US dollar. However, as the trading session progressed, the shilling showcased its strength, concluding the day at the 3715/3725 exchange rate.

Market analysts attribute the shilling’s robust performance to a healthy influx of foreign currency during the trading session. This influx helped to balance the limited demand for foreign exchange. The increased supply of foreign currency created a favorable environment for the shilling to appreciate against the dollar.

During Monday’s session, the money markets exhibited liquidity, with overnight yields averaging 9.62%, as reported by Absa traders.

Looking ahead, the Bank of Uganda is scheduled to conduct a Treasury Bill auction on September 13, 2023. Market participants will closely monitor this event, as it may impact the performance of the Ugandan shilling in the coming days.

The shilling’s strong showing at the start of the trading week underscores its resilience and potential for further stability in the foreign exchange market.