KAMPALA (Reuters) - The Ugandan shilling traded flat on Monday, under pressure as traders anticipated rising demand for dollars from retailers importing consumer goods for the year-end shopping season. At 0841 GMT, commercial banks quoted the shilling at 2,520/2,530, unchanged from Friday's close. "We are having a lot of inquiries from importers," said David Bagambe, trader at Diamond Trust Bank. "As we move closer to the holiday season, we will be seeing substantial (dollar) demand by importers looking to bring in merchandise for holiday shoppers and that's going put pressure on the shilling." Purchases of imported clothes and electronics in the east African coffee-producing country of 33 million people have grown in recent years. Traders said inflation data for this month, due out on September 28, would influence the shilling, especially if the figure falls for the seventh straight month to give policymakers room to cut interest rates further. "If the downward price trend holds the central bank might get confidence to cut rates again next month," said a trader at a leading commercial bank. "That will certainly ... feed negative sentiment for the shilling."

Source