* Cenbank selling forex for third straight session
* Shilling has lost about 4 pct since mid-Sept
(Adds trader, background)
KAMPALA, Oct 12 (Reuters) - Uganda's central bank said itwas in the market to sell an unspecified amount of foreignexchange for the third straight day on Friday, a move whichstrengthened the shilling slightly in the minutes afterthe announcement.
The local currency firmed to 2,590/2,600 at 0610 GMT from2,600/2,610 before the announcement, Thomson Reuters datashowed.
"The shilling hadn't really moved much but i think they'rekeen on demonstrating their determination to support theshilling and stem volatility in the market," Faisal Bukenya,head of market making at Barclays Bank in Uganda.
The shilling began a sustained weakening in late July ascuts to the central bank's key lending rate began filteringthrough the economy.
However, the shilling has fallen nearly 4 percent since Sept19, a slide brought on by demand for the greenback from banksand offshore investors after a sharp fall in yields ongovernment securities.
(Reporting by Elias Biryabarema; Writing by Richard Lough;Editing by George Obulutsa)
Keywords: UGANDA CURRENCY/