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UPDATE 1-Ugandan cbank seeks to sell forex for third straight day

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* 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)

((Email: nairobi.newsroom@reuters.com)(Tel: +254 20 2224717)(Reuters Messaging:richard.lough.thomsonreuters.com@reuters.net))

Keywords: UGANDA CURRENCY/