Market watch: Uganda shilling extends its gains against the dollar, outperform regional peers

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The local unit extended its gains amid low appetite for forex, holding in the range of 3590/3600.
The high yield carry available on shilling assets has seen the Uganda shilling outperform its regional peers.

On the fiscal side, Uganda’s fiscal path remained a major concern with reports out that the government was planning to approach creditors with a request to suspend debt payments.

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The development created anxiety as markets questioned the government’ s ability to prudently manage its fiscal affairs, improve expenditure efficiency and strengthen revenue mobilization going forward.

In the regional markets, the Kenya shilling was range bound as corporates stayed on the sidelines to meet their end month shilling obligations.
Trading was in the range of 108.40/108.60.

In the global markets, the US dollar skidded towards a fourth weekly decline against its major peers as the Fed stuck to its message of ultra-low interest rates.

It became clear at the conclusion of the Fed policy meeting that there was no substantial further progress towards recovery to warrant a change in stance.

Outlook suggest a range bound unit, with market volumes expected to remain thin, keeping the local currency tilted to the upside.

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

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