Market forecast: shilling likely to trend on a descending path

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By: Stephen Kaboyo

The Uganda shilling was a touch weaker on uptick in demand mainly from fuel importers and manufacturers. In most trading sessions of the week, the unit remained in its sideways consolidation.

Trading was in a range of 3675/95.
In the regional markets, the Kenya shilling was broadly stable trading at 124.00/20, but was expected to lose some ground on pockets of demand from the energy sector.

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In fixed income, the Treasury bill yields held flat as Bank of Uganda continued on their approach to rein in outlier bids, as a result the offered amount was not realized. Yields held at 10.384%, 10.900% and 12.502% respectively.

In the global markets, the US dollar weakened against other major currencies after a raft of data showed that the U.S. economy is losing momentum. Fears of economic slowdown dented risk appetite.

Outlook indicate that the shilling is likely to trend on a descending path as long as demand remain elevated and markets price in material risk from domestic economic pressures.

Alpha Capital Forex Bureau: For competitive Forex Rates VISIT Plot 12 KAMPALA ROAD-CHAM TOWERS SUITE 43: call: 0414-580619, 0392-612648

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