The Uganda shilling held firm on the back of subdued market activity as most players stayed out of market due to mid-month tax payments. Trading was in the range of 3580/3590.
In the fixed income market there was no treasury auction.
In international markets, the US Federal Reserve took a step towards normalizing monetary policy by increasing interest rates to a 1% to 1.25% with a bullish signal that the Fed remained confident that the US Economy was on a good recovery path.
The markets took the news in stride, with the US dollar strengthening in anticipation of further hikes down the line.
The British sterling edged up after Bank of England came closer to hiking interest rates, a position that took the markets by surprise.
In the coming days, the shilling is likely to remain stable with markets having priced in a moderate rate cut at the June MPC meeting due to take place in the early part of the week.
The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates call: 0414-580619, 0392-612648