The local currency was up against elevated demand, trading weaker touching a key level of 3550 with the bearish mode likely to linger on.
In the fixed income, yields on government bonds five year and twenty year bond continued to hold, printing at 13% and 15.5%.
Overall, the falling long term yields and renewed demand for yield by foreign investors may tempt the country to lock in lower rates at the long end of the bond curve.
Globally, US dollar edged higher versus major peers but within a narrow range as investors awaited clues on the pace of Federal Reserve policy normalization.
On the other hand, the resolution of US debt ceiling was expected to play in support of the Greenback.
In the regional outlook, the Kenyan, Ugandan, Zambian and Nigeria currencies are expected to trade on the back foot pressured in part by the global oil prices
The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates VISIT Plot 12 KAMPALA ROAD-CHAM TOWERS SUITE 43: call: 0414-580619, 0392-612648