The Uganda shilling remained stable amidst muted demand as most corporates stayed out of the market focusing on mid month tax obligations. Trading was in the range of 3580/3590.
In the treasury bill auction, yields slightly dropped to trade at 12.546%, 12.910% and 13.850% for 91, 182 and 364 days respectively.
In other economic news, Bank of Uganda reduced the CBR by 50 basis points in order to foster growth at a time where weakness in the economy is widespread.
In the international currency markets, the dollar was bullish after the Federal Reserve Chair comments indicated a faster pace of US interest rate hikes in it’s upcoming meetings.
In the commodities markets, oil prices tumbled over concerns of OPEC’s compliance with output cuts to deal with global oil supply.
Brent crude futures traded at USD 55.80 per barrel.
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According to Stephen Kaboyo, the Alpha Capital markets boss: In the coming days the shilling is likely to remain flat against the dollar on account of subdued demand.