Uganda Shilling to continue with its mild bull run as markets slowdown

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By Stephen Kaboyo

The Uganda shilling traded marginally stronger against the dollar buoyed by inflows from mainly commodity exporters.

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The Central Bank mop up operations that included a seven year repo and a deposit auction, also supported the currency.

Trading was in the range of 3668/3678. In the interbank money market, overnight rates averaged 6% while one week quoted at 9%.

In the fixed income market segment, there was no primary auctions, a few deals were reported on secondary market counters.

In the regional currency markets, the Kenya shilling held steady with remittances lift it up to trade at 101.50/70.

In the global markets the US dollar fell more than one percentage point against other majors with the global risk appetite boosted by the apparent clearing of two clouds hanging over the global markets; the US- China tariff due on
15th December and the Britain elections.

In Britain, the pound was seen giving back some of its recent multi- month highs as investors booked profit on what has been weeks of stellar gains for a currency that has always been positioned for a health conservative majority win.

Outlook for the shilling indicate that the shilling will continue with its mild bull run as markets slowdown for the holiday season with higher than usual expected from remittances and charities sustaining the supply side.

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

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