The US dollar and the Ugandan shilling pair continued to play in the range of 2635-60 with momentum still low to get out of the range for the week ending March 15.

With the political situation in Kenya turning out peaceful, the market saw local units remain strong and the Kenya shilling leading the way with an appreciation of 1% to touch 85.30 from the 86.20 level, according to the Financial Markets Team from Standard Chartered Bank.

The team said yields on treasuries were unchanged with mild interest from investors and no primary issuance from the Central Bank.

Stephen Kaboyo, the managing director of Alpha Capital Partners said most market players were seen unwinding their long dollar positions in the early part of the week and remained mostly square.

In the coming days, Kaboyo said, the market will be entering early days of seasonal demand whereby corporates will be declaring and paying dividends to shareholders.

"This is likely to put pressure on the shilling," he said. He said the shilling is expected to hold at the current levels of 2630/50 in the early part of the coming week with trickle in demand from manufacturing and oil sectors.