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The Uganda shilling depreciated marginally mid week as commodity flows reduced and corporate demand slightly picked up.

Trading was in the range of Ugx. 3585/3595.

In the government securities market, yields on 91 and 182 day treasury bills dropped to 11.962% and 12.545% while the yield on 364 day slightly increased to 13.866%.

In other local economic news, headline inflation for the month of February rose to 6.7% from 5.9% mainly on account on food prices. At the same time core inflation went up to 5.7% from 5.3%.

In the international currency markets, the dollar gained ground against the major currencies as the Federal Reserve Bank gave a strong signal of a rate hike at its March sitting.

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On another note the long awaited Donald Trump speech left the markets guessing as it gave no clarity on new administration spending plan.

Stepehn Kaboyo, the Alpha Capital Markets boss says: In the coming week, the shilling is expected to weaken mildly as corporate demand rebounds coupled with negative sentiment on the comments attributed to senior policy makers paint a pessimistic picture on the state of the economy going forward.

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