The shilling continued to slide against the dollar during the week, trading inside the range of 3450-3490. The market witnessed increased buying pressure as the month came to a close.
In the Bond Market, Bank of Uganda accepted Ugx. 195.6 billion in two and five year bonds a little above the amount offered. Weighted average yields came out at 23.59%and 21.20% respectively.
In the international markets, the US Federal Reserve kept interest rates unchanged and indicated that it was closely monitoring global economic developments. The decision was widely expected by the markets .
According to Stephen Kaboyo, the Alpha Capital Markets boss, the forecast for the shilling as we enter the election month point to rising demand linked to election anxiety. Looking beyond, the shilling trend will be largely influenced by a myriad of structural imbalances facing the economy.