The Uganda shilling traded in a very narrow range of 2475-2490 in the week (from Aug. 6 to 10) with demand and supply remaining well matched, said Chris Rwengo, a forex trader at Standard Chartered Bank on August 10 in a statement.
Rwengo said at the weekly close, commercial banks in Kampala quoted the shilling at 2,475/2,485, unchanged from last Week’s close.
“Going forward, the Ugandan shilling is expected to remain stable against the dollar over the next week, underpinned by weak dollar purchases by companies, with resistance seen ahead of 2500 and support at 2470.
The shilling has stabilised since May, defying three rate cuts by the central bank that were widely expected to weaken it.
The exchange rate last depreciated rapidly hitting the sh2, 900 mark in September last year largely due to expensive imports from the Euro Zone economies, further amplifying the domestic troubles.
At its monthly press briefing early this month, Bank of Uganda said the exchange rate stood at an average of Shs 2, 474 per US dollar, representing an appreciation of 0.4% month-on-month and 4.4% year-on-year. The bank said the appreciation was attributed to the inflows from off-shore agents and coffee export proceeds.
written by Louis Vuitton Bags, August 18, 2012