By Stephen Kaboyo
The Uganda shilling continued to register substantial gains boosted by hard currency flows from offshore investor and commodity exports. The unit hit a high of 3600, the strongest level seen in months.
In Kenya, the currency hovered at a new low of 142.7, undermined by elevated demand mainly from oil importers and the manufacturing sector.
In the fixed income market, yields were generally flat with a very slight movement on the 91 day. Bank of Uganda was seen eliminating outlier bids in an effort to keep rates within their tolerable range. Yields printed at 10.002%, 10.800% and 12.000% respectively.
In the global markets, the major focus was on the US sovereign credit rating downgrade by Fitch. The downgraded from triple A to double A was on account of the growing debt burden and the impasse on the debt ceiling.
Forecast indicate that the shilling is likely to extend its corrective run backed by sustained flows against depressed demand condition in the market.
