Market watch: Shilling relatively stable as worries of reduced inflows over LGBT law eases

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The local currency was relatively stable underpinned by low demand as worries of reduced inflows over LGBT law eased. Trading was in the range of 3725/35

In the neighboring Kenya, the shilling was undermined by fx scarcity in the market against a surge in demand across all sectors of the economy. The unit was quoted at 139.00 per dollar.

In the treasury bill auction, for the first time in months, yields edged up as Bank of Uganda loosened their grip on interest rates and took up 402 billion way over the amount offered of 185billion, This was an effort to meet government financing needs before the closure of the financial year.

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In the global markets, the US dollar stumbled slightly, but remained near a three month high after a surprise rate by Bank of Canada suggesting that other Central Banks including the Federal Reserve may have a lot to do to control inflation.

In the outlook, with no news of note to give a bit of direction, markets await the budget pronouncements for clues. In the meantime the current lethargy is expected to hold.

Alpha CAPITAL Forex Bureau: For competitive Forex Rates visit plot 12 Kampala road-CHAM TOWERS SUITE 43: call: 0414-580619

also read: Fraud, insider dealing at Uganda Development Bank: 900m disappears just like that; could this be a tip of the iceberg?

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