Improved inflows help Uganda shilling to stay strong

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The Uganda shilling inched up against the dollar, benefiting from subdued trading activity as market players held onto the local currency in preparation of mid-month tax payments.
Trading was in the range of 3655/65.

In the fixed income market, the treasury bills were generally flat with yields at 7.768%, 10.711% and 12.500%. Demand for the assets continue to be supported by the search for yields from both local and offshore investors.

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In the regional markets, the Kenya shilling traded within a tight range as the forex market weighed the level of demand, with small pockets coming from the energy sector and telecoms.
The currency was quoted at 109.30/50.

In the global markets, the US dollar was bearish as new signs of weakness in US jobs market dented investor expectation about the pace of economic recovery from the pandemic.

Forecast for the week indicate that the local currency will remain range bound as improved inflows provide support. Markets will also be eyeing the MPC CBR release where its is widely anticipated that Central Bank will maintain an accommodative policy stance despite the highly uncertain economic outlook .

For competitive Forex Rates VISIT Plot 12 KAMPALA ROAD-CHAM TOWERS SUITE 43: call: 0414-580619, 0392-612648

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