The Uganda shilling traded stronger against the U.S dollar on Wednesday with the USD/UGX pair plunging to the 3710/3730 levels from 3725/3745 range on Tuesday.

Uganda Shilling expected to remain weak amidst amplified importer demand

The Uganda Shilling dipped further against the U.S dollar at the start of the week amidst amplified importer demand for the hard currency from the energy and manufacturing sectors.

The local unit was quoted at the 3745/3765 ranges weaker than the previous close. Experts in the sector see the same scenario in today’s session as the shilling basics remain thin.

“There will be a T-bill auction with an offer of Ugx 195 billion for the 91 days, 182 days, and 364 days papers tomorrow.

“We expect rates to hold within the current levels,” notes a Financial analyst with Commercial Bank of Africa.

The U.S. dollar edged lower against its rivals on Monday shrugging off better-than-expected U.S. services activity as focus shifted to the U.S. midterm elections that could spring a bout of volatility across global markets.

The upbeat data was overshadowed by expectations that the U.S. mid-term elections, will result in divided Congress, with Democrats tipped to take control of the House.

The GBP/USD rose to $1.3044 as analysts touted further room for upside in the cable following the Bank of England’s hawkish remarks and the expansionary budget that worked as catalysts for additional sterling strength once markets are clearer on the potential Brexit outcome.

The EUR/USD rose to $1.1414, but gains were weighed down by an ongoing standoff between Italy

and the European Union lawmakers over the country’s budget proposals.