Ugandan shilling unchanged as bank dollar demand falls

The Ugandan shilling was unchanged on Wednesday due to slowing dollar demand from commercial banks, and it is expected to remain trading below the key support level of 3,400 this week. At 0810 GMT commercial banks quoted the shilling at 3,380/3,390, unchanged from Tuesday's close. "The strong demand that was being exerted by banks has come off ... most of them (banks) have probably squared their positions," said Faisal Bukenya, head of market making at Barclays Bank Uganda.
Bukenya said the shilling was finding a strong support level at 3,400 and that the possibility of dollar inflows for a two-year and 10-year Treasury bond auction later on Wednesday was likely to keep the shilling trading below that level.