The Uganda shilling maintained a stable stance, supported by end month inflows mainly from NGO’s and commodities amid very low demand levels in the market. Trading was in the range of Ugx. 3585/3595.
Similarly, In the interbank money market, rates remained stable with overnight funds trading at 7% and one-week money at 10%, holding at the previous week’s level.
In the fixed income market, Bank of Uganda conducted a treasury bill auction and 165 billion was on offer. Yields dropped slightly to 9.455%, 9.882%and 11.022% for 91, 182 and 364 days.
In regional currencies, the Kenya shilling strengthened to a five month high to trade at 102.85/103.05 supported by portfolio flows into the bond and equity markets.
In international currency markets, the US dollar recovered from it’s long running weakness attributed to the gridlock in Washington and the geopolitical uncertainties.
The real test however was the expected from the August job report that was seen as a potential catalyst that could revive the sliding dollar or clear the way for further weakness.Outlook indicate a range bound shilling with no game changer on the horizon, likely to interfere with current trend.
The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates call: 0414-580619, 0392-612648