Shilling to weaken as we get into the last quarter of the fiscal year

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The Uganda shilling surrendered some ground, trading weaker due to uptick in demand from energy, telecom and import sectors.

Trading was in the range of 3610/3620

In the fixed income market, Ugx. 160 billion was on offer. Yields dropped on the 91 and 182 paper to 10.660% and 11.823%, while the yield on 364 day paper increased marginally to trade at 13.866%. All tenors were oversubscribed.

READ: Is Uganda’s economy in intensive care?

In international currency markets, the US dollar recovered from it’s previous losses on the back of renewed expectation for more interest rate hikes in the coming months.

The sterling, meanwhile dipped as investors kept a closer look at the formalities of Brexit.

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The shilling forecast indicate that the unit could weaken marginally on account of seasonal dollar demand for corporate dividends more especially as we get into the last quarter of the fiscal year.

The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates call: 0414-580619, 0757 450832, 0392-612648

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