The Uganda shilling was relatively stable with flows from commodity Exeter’s and offshore investors lending support. The unit held in a narrow range of 3715/25.
In the neighboring Kenya market, the shilling lost ground on elevated dollar demand from various sectors, trading at 137.38, and was poised to surrender more ground.
In the bond market, the five and 20 year bond yields held at 14.750% and 16.250%. The market tendered 726 billion against the offered 400 billion. However BOU was only able to take up 226 billion, being mindful of premium bids and their impact on the overall interest rate costs.
In the global markets, the US dollar firmed to a near six month peak against all majors as optimism over debt ceiling talks raised expectations that US interest rates are likely to stay high for a longer period.
also read: Is MTN Uganda on the verge of becoming a bank? Are Ugandan banks ready for this monster?
Looking ahead in the coming week, the shilling is likely to be sidelined to the prevailing levels as market activity remain sluggish, with no major market changing event expected.
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