The Uganda shilling maintained a firm stance, trading in the range of 3595/3605 supported by improved inflows mainly from commodities. Demand remained low.
In the interbank money market, there was sufficient liquidity, rates remained stable with overnight funds trading at an average of 7% while one-week money traded at 10%.
In the fixed income market, Bank of Uganda reopened the five year and 15 year bonds, with 200 billion on offer Yields came out at 13.32% and 15.07% respectively. The auctions for both were oversubscribed.
In the regional currency markets, the Kenyan shilling proved resilient trading at Ksh 103.10, following the supreme court decision on presidential elections of the previous week. Commercial Banks were seen unwinding long dollar positions a sign that market anxiety was no longer a factor.
In the international currency markets, the US dollar gained ground supported by the surprise deal of extending the debt limit, however undertones on the geopolitical tensions kept the dollar on the edge.
Forecast indicate that shilling will continue trading within the current range, with a marginal chance of strengthening on account of buoyant inflows.
The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates call: 0414-580619, 0392-612648