By Stephen Kaboyo
The Uganda shilling edged lower undercut by persistent demand from importers ahead of March seasonality factors taking center stage.
Trading was in the range of 3735/3745.
In Kenya, the market continued to grapple with dollar shortage as Central bank reserves touched their lowest level in 10 years. The currency of East Africa’s largest economy traded at 129.98.
In fixed income market, the treasury bills yields generally held flat with the Central Bank focusing more on the one year paper where they raised double the amount on offer, primarily to mitigate refinancing risk and lock in acceptable rates. Yields printed at 10.000%, 10.249% and 13.001% respectively.
Globally, markets were dominated by fear, and uncertainty as bank turmoil sparked flight to safe haven currencies with US dollar taking advantage. Fears of contagion spread across to Europe following the collapse of Silicon Valley Bank with the main culprit being Credit Suisse that was on the edge, looking for ways to shore up liquidity and investor confidence.
also read: Is MTN Uganda on the verge of becoming a bank? Are Ugandan banks ready for this monster?
Going forward the UGX/USD pair is poised to test technical resistance around 3750, with a break of this level likely to open the door for a continuation of its broader uptrend towards 3800 and beyond.
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