Shilling firmer against a soft dollar; FID signing to create a positive tailwind, lift the unit

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The shilling was firmer against a soft dollar supported by healthy flows from commodities exporters as market demand remained at a low ebb.
The trading held in the range of 3645/3655.

In the fixed income, yields on the 91 day and 364 day marginally went up by 0.012% and 0.301% respectively while on the 182 day there was a slight drop.
The total offer of 245 billion was taken up, registering a huge subscription.

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In the regional markets, the Kenya shilling strengthened against the dollar on improved market flows from portfolio investors targeting the infrastructure bond and new financing from the International Monetary Fund.
Trading was in the range of 107.90/ 108.10.

In the global markets, the US dollar traded near it’s lowest in more than two weeks against it’s major peers, tracking yields lower after the Federal Reserve minutes of the March policy meeting fell short of giving the market a solid direction.

Outlook for the local unit indicate a bullish stance as the FID signing is expected to create a positive tailwind and lift the shilling.

In the week, Bank of Uganda will also announce the CBR for April, where it is likely to keep the rate unchanged as it remains cautious about the risks of the pandemic.

The writer works with 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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