Uganda shilling weakens

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The Uganda shilling weakened slightly on account of elevated demand from energy and manufacturing sectors but stabilized at close of the week as demand waned. Trading was in range of 3610/3620.

In the fixed income market, Bank of Uganda offered 170 billion in the treasury bill auction. Yields slightly edged down to trade at 9.539%, 9.988%, 11.152% in the 91, 182 and 364 days respectively. The auction was oversubscribed in all tenors.

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In international currency markets, the dollar was wobbly as markets remained uncertain on the future direction of interest rates in the US. Investors were keenly awaiting the US job report to pick some clues.

In the commodities markets, oil price dipped and traded below the US 50-dollar mark mainly on the rising US output.

In the coming days, it is likely to be a range bound market for the shilling, with elections in the two major Uganda’s trading partners looming. The regional political developments will be a key factor to watch.

The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates call: 0414-580619, 0392-612648

read: Shilling forecast point to mild weakening

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