By Stephen Kaboyo
The Uganda shilling was a touch firmer on low appetite for the greenback as most corporates were out of the market settling mid- month tax obligations.
Flows from mainly the NGO sector increased the supply of dollars in the market. Trading was in the range of 3685/3695.
In the money market the average daily interbank lending rate for overnight and one week held at previous week levels of 7% and 10% respectively.
In the fixed income space, a Treasury bill with 220 billion on offer was held. The effective yield prices were 9.73%, 10.79% and 11.43% respectively. Yields marginally dropped across all tenors.
In the regional currency markets, the Kenya shilling weakened amid excess liquidity in the local money market with overnight funds trading at 2.1% dropping from 2.4% of the previous week.
In the international currency markets, the dollar dipped following remarks by international Monetary Fund that US currency is overvalued by 6% to 12% based on near term economic fundamentals. The dollar index which tracks the greenback performance against the major currencies fell 0.1%.
While in the commodities markets, gold futures traded higher, sending prices to a six year high trading at 1423.30 an ounce as the dollar weakened.
Forecast suggest no discernible long term trend in sight. Shilling is expected to stay range bound as market activity remain balanced.
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