{{Uganda’s central bank intervened for the second time this week on Wednesday to support the shilling after the currency was weighed down by heavy demand for dollars, traders said.}}
Bank of Uganda started selling dollars in early trade after the shilling dropped to 2,655/2,665, the weakest level since February 2013. By 0725 GMT, it strengthened to 2,650/2,660, where it had closed on Tuesday.
Housing Finance Bank trader Robert Mpuuga said demand for the U.S. currency from telecoms and energy companies weakened the shilling.
“The pressure forced the central bank to intervene and offer it (the shilling) some support,” said Mpuuga.
The central bank also intervened on Monday.
The shilling has weakened about 5 percent against the dollar this year.
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