Ugandan shilling weakens

The Ugandan shilling was weaker for a third consecutive day on Wednesday, sapped by appetite from commercial banks looking to cover short positions as they close the year. At 0942 GMT commercial banks quoted the shilling at 2,770/2,780, weaker than Tuesday's close of 2,763/2,773. "Right now, whoever is short is exerting demand because everyone is balancing their positions before closing the year," said Faisal Bukenya, head of market making at Barclays Bank.
The currency is down 9 percent against the greenback this year, with most losses made in the seconnd half of 2014. Traders said it is likely to trade in a stable range after the Bank of Uganda left its benchmark interest rate unchanged at 11 percent in December, partly citing a weak currency.