Uganda shilling drops further; expected to slump into a new support level

- Advertisement -

Uganda shilling drops further; expected to slump into a new support level

The Uganda shilling tumbled further, undermined by a surge in demand from offshore investors on a race for liquidity as international sentiment triggered flight to safety.
Trading was in the range of 3550/60.



In the fixed income market, yields in short term government securities remained unchanged with markets taking a view that yields have bottomed out following a consistent correlation of current 91 day benchmark rate to the Central bank policy rate. Yields printed at 6.501%,8.401%, and 9.700% respectively.

- Advertisement -

In regional markets the Kenya, Zambia , Nigeria and Tanzanian currencies were all facing fresh pressure on account of costly imports and debt service distress triggered by the geo political risk.



Globally, with the Ukraine crisis flaring up, volatility was strong in all major currencies with US dollar the only unit on the front foot supported by international safe haven sentiment coupled with the Federal Reserve comments of rising interest rates at its March meeting. The Euro was set for its worst performance as the prospect of high commodity prices continued to be a concern for European economies.

In energy markets, oil prices soared as the Ukraine crisis triggered a dash for commodities that could be in short supply. A barrel traded at USD 110.



Going forward, the Uganda shilling technical outlook is likely to slump into a new support level due to a combination of current market positioning and the negative sentiment that will yield a strong bearish trading bias.

Alpha Capital Forex Bureau: For competitive Forex Rates VISIT Plot 12 KAMPALA ROAD-CHAM TOWERS SUITE 43: call: 0414-580619, 0392-612648

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.