Uganda’s shilling strengthened against the dollar, taking its lead from the currency of neighboring Kenya. The currency of East Africa’s third-biggest economy appreciated as much as 0.8 percent to 2,868 per dollar, and was 0.3 percent stronger at 2,840 in the capital at 2:01 p.m., according to data compiled by Bloomberg. It closed at 2,847 yesterday. Kenya, which is Uganda’s biggest trading partner, imposed limits on banks’ foreign-currency operations last week as it sought to bolster its currency. The foreign-exchange exposure limit for commercial banks was lowered to 10 percent of core capital from 20 percent, Finance Minister Uhuru Kenyatta said on Oct. 13. “Companies are staying out of the market on anticipation that the central bank may follow the Kenya example,” Faisal Bukenya, the head of currency trading at Barclays Bank Uganda Ltd., said by phone from Kampala. To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

Source