KAMPALA: The Ugandan shilling extended its losses on Monday, hurt by demand for foreign exchange from manufacturers and energy firms.
At 1101 GMT, commercial banks quoted the shilling at 3,475/3,485 to the dollar, weaker than Friday's 3,445/3,455 close. The shilling is 20.5 percent weaker so far this year.
"The depreciation pressure is being driven by demand from manufacturing and energy firms," said Faisal Bukenya, head of market making at Barclays Bank. Firms wanted dollars to meet outstanding payment obligations for the year, he added.
Some foreign-owned companies were buying dollars as they prepared for 2015 dividend payments, traders said.
Confidence in the shilling has also sagged as investors hedge against the impact of a possible interest rate hike by the US Federal Reserve this week. A rate rise could spur investors to move away from riskier emerging market assets.
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