The Uganda shilling posted marginal gains on the back of improved inflows mainly from commodities and spill over of end June conversions.
Trading was in the range of 3595/3605. In the interbank money market, overnight funds traded at an average of 6%, while 1 week funds traded at 10%.
In the first government treasury auction for the financial year 2017/18, Shs 165 billion was offered. Yields declined significantly at the long end of the curve with 364 day treasury bill dropping from 13.353%to 11.817% and 182day from 11.817% to 10.275%. 91days slightly dropped from 10.275% from 19.816%
In international currency markets, the US dollar was stable in a short trading week as markets opened after 4th of July holiday. The key issues on the investors radar were the Federal Reserve minutes and US June jobs report that were expected to come out at the end of the week. The British pound was held down in what was seen as shaky business confidence on account of lingering political uncertainty.
According to Stephen Kaboyo, the forecast in the coming days indicate that the shilling is likely hold firm with a bias towards an appreciation supported by the steady foreign exchange inflows.
The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates call: 0414-580619, 0392-612648