The Uganda shilling was relatively stable, but slightly weakened mid week as demand picked up. The Bank of Uganda open market operations offered some support.
Trading was in the range of 3585/3595.
In the treasury bill auction, Ugx. 165 billion was on offer. Yields dropped across all tenors to 13.088%,13.436% and 14.053% for 91, 182, and 364 day respectively.
The auction was oversubscribed with average bid to cover ratio of 2.537%.
In the international currency markets, the dollar slipped to a 12 week low as markets went into a cautious mode following the US Federal Reserve meeting that presented a mildly upbeat view of the US economy but gave no clarity on when it will raise interest rates.
Going forward, markets have formed a view that the long term trend of the dollar is likely to be volatile as investors remain concerned about President Trump’s aggressive posture on social and economic fronts.
‘ ‘Outlook for the shilling indicate a stable unit, with pockets of demand materializing mainly from corporates but not significant to alter the trend.’’ Says Stephen Kaboyo, the Alpha Capital Market boss