The Ugandan shilling strengthened slightly on Wednesday due to lower foreign currency demand as firms prepared for mid-month tax payments, with rates quoted at 3,662/3,672 per dollar.
On Wednesday, the Ugandan shilling exhibited slight firmness against the U.S. dollar, buoyed by decreased demand for foreign currency as local businesses geared up for tax payments due mid-month. According to traders, at 0654 GMT, commercial banks quoted the shilling at 3,662/3,672 to the dollar, a marginal improvement from Tuesday’s close of 3,665/3,675.
In summary, the Ugandan shilling’s modest strengthening can be attributed to local firms’ upcoming tax obligations, leading to reduced demand for foreign currency. This trend signifies a brief respite for the shilling against the dollar amidst tax payment activities.
Original Source: www.tradingview.com
