Shilling to trade in a narrow range as markets begin price in the new fiscal measures

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The Uganda shilling was relatively stable amid low market activity as corporates went out of positions to settle mid-month tax obligations.

Trading was in the range of 3630/3640.

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In the bond market, BOU offered a total of 185 billion in a two-year reopening and 10-year new issue. The coupons were 13.250% and 16.002% respectively, while yields came out at 14.661% and 15.997%.

The accepted bids were only 98.4billion while the rest were considered speculative.

In international currency markets, the US dollar was under enormous pressure amid deepening US political controversy that boosted the appeal of risks-off trades.

The other major currencies gained ground, specifically the British pound that hit it’s highest in eight months riding on the political sentiments in the US.

In the coming days the shilling is likely to trade in a narrow range as markets begin pricing in new fiscal measures that are due to be outlined in the budget reading on 8th of June 2017.

The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates call: 0414-580619, 0392-61264

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