Ugandan shilling steady on bet T-bill sale attracts foreigners

KAMPALA (Reuters) - Uganda's shilling recovered from early losses on Monday, helped by expectations of foreign demand for Ugandan government debt at this week's sale of Treasury bills, traders said. Demand for the dollar from the energy and banking sectors early in the session saw the shilling weaken to 2,545/2,550 from Friday's close of 2,538/2,542. "But it soon recovered as players realised we might get some (dollar) inflows into this week's auction and there was a liquidity mop-up by the central bank which also squeezed the shilling," said David Bagambe, a trader at Diamond Trust Bank. Tight monetary policy has maintained high lending rates and depressed appetite for dollars, allowing the shilling to trade in a stable range of 2,500-2,600 for much of this year. Brenda Akumu, a trader at KCB Uganda, expects some commercial banks to cut back their long dollar positions, offering the shilling some support. "Overall (dollar) demand still remains light and some players have long positions which they are likely to start trimming," said Akumu. "In the short to medium term, the market should be range-bound between 2,530-2,540." Ugandan Shilling Money Guide.... Calculated Cross Rates.......... Deposits..................... Deposits & Forwards............. Uganda Equities Guide....... Uganda All Share Index........ Shilling background ..... Ugandan Debt Guide............ All Uganda Bonds............. Uganda T-Bills.............. Uganda Benchmark............. Central Bank ................ Ugandan Contributor Index.... Uganda Coffee Prices.......