Commercial banks quoted the shilling at 3,690/3,700 against the US dollar on Thursday, weaker than last Thursday's close of 3,675/3,685.
"We have generally seen the shilling bend on the weakening side as the rate move feeds a negative sentiment and I think that knee-jerk reaction will go on for some time," said a trader at a leading commercial bank.
The Bank of Uganda cut its policy rate to 9% from 10% on Monday, saying it needed to stimulate growth amid low inflation.
TANZANIA - The Tanzanian shilling will likely hold its ground in coming weeks, underpinned by the start of the cashew season, traders said.
On Thursday commercial banks quoted the shilling at 2,294/2,304 against the dollar, nearly the same level as a week ago.
"The shilling will be more stable next week and even throughout the month to November because the cashew nut season is starting," said a forex trader from a commercial bank in Dar es Salaam.
ZAMBIA - The Kwacha was quoted at 13.1300 per dollar on Thursday, slightly stronger than the close of 13.1400 a week ago.
"The kwacha seems to have established a new equilibrium level above $1/K13.000 and will likely trade above this level in the medium to long term," Cavmont Bank said in a note.