By Stephen Kaboyo
The Uganda shilling firmed slightly on the back of forex inflows mainly from portfolio investors targeting the local debt market. Demand was generally flat.
Trading was in the range of 3712/22.
In the fixed income market, a Treasury bill auction was held with 195 billion on offer. Yields marginally declined across board, printing at 10.572%, 11.942% and 12.750% for 91,182 and 364 day respectively. The auction was hugely oversubscribed.
In the regional currency markets, the Kenya shilling edged up due to the tightening of liquidity conditions in the money market which in normal situations hikes up the cost of holding long dollar positions. Trading was in the range of 102.35/55.
In the international currency markets, the US dollar lost ground for two consecutive sessions ahead of the US thanksgiving holiday.
In other currencies, the Euro and the Sterling steadied after Britain and the EU agreed in principle to discuss their future trade and economic relations at the upcoming meeting.
For the week ahead, the Uganda shilling is expected to hold ground as demand remains low against expected lift up in supply conditions on account of trickle in of forex from Ugandan’s living abroad, portfolio investors looking for trade opportunities in the fixed income space and a bit of export flows.
the writer works with Alpha Capital Forex Bureau . Offers competitive Forex Rates: +256 (0) 0392612648 / 0414580619