The Ugandan shilling strengthened slightly on Wednesday, influenced by lower foreign currency demand as businesses prepared for mid-month tax payments. The exchange rate improved from 3,665/3,675 to 3,662/3,672 against the U.S. dollar.
On Wednesday, the Ugandan shilling exhibited a slight appreciation, primarily influenced by diminished demand for foreign currency as businesses organized for upcoming tax payments due mid-month. According to traders, this trend reflects the local firms’ focus on settling their tax obligations without a significant push for U.S. dollars. At 0654 GMT, commercial banks reported the exchange rate of the shilling at 3,662 to 3,672 against the U.S. dollar, a slight increase from Tuesday’s closing rate of 3,665 to 3,675.
In conclusion, the Ugandan shilling’s marginal strength on Wednesday reflects decreased demand for foreign currency linked to approaching tax payment deadlines for local firms. This situation led to a favorable exchange rate for the shilling as observed in the latest bank quotes.
Original Source: www.tradingview.com
