The Uganda shilling remained firm during the week, with mild appreciation on account of subdued market activity and Bank of Uganda (BoU) open market operations.
Trading was in the range of 3375/3385. Markets were calm awaiting the outcome of BOU monetary policy meeting.
In international currency markets, the US dollar was upbeat, as comments came through on Trump administration tax reform plans that suggested ambitious reforms last seen in Reagan era.
The British sterling held firm on positive housing data, while the euro lost some ground, undermined by the eurozone political risks .
In commodity markets, oil prices were relatively stable on account of strong Chinese crude imports and OPEC production controls. Brent crude futures traded at USD 55.68 per barrel.
‘ ‘In the coming days the shilling is expected to hold onto it’s gains supported by muted demand as corporates settle mid month tax obligations.’’ Says Stephen Kaboyo, the Alpha Capital Partners boss.