Kampala — THE shilling tumbled 4% against the dollar last week, closing 2,160/70 from the 2,075/85 opening levels last Monday.

"This was mainly driven by events in the global markets as international investor sentiments were bearish as they increasingly fled to safe assets.

"With uncertainty on earnings and economic recovery, prospects kept shadowing any positive news," Denis Mushabe, a foreign exchange trader said.

He said the market saw a huge drop in dollar inflows as most sellers were out coupled with increasing demand from importers especially oil companies.

"Interest rates came off especially in the short-end of the curve as the central bank did a reverse repo twice in the week with the longer end still short.

"Government bonds held firm with mild activity through the week with no auction," Mushabe explained.