Shilling boosted by Diaspora remittances, inflows from NGO’s

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The Uganda shilling remained stable but leaning towards a mild appreciation on the back of inflows from Non-Governmental Organizations and diaspora remittances amid sparse trading and ahead of the Monetary Policy meeting which is expected to continue the easing cycle.

Trading was in range of 3605/3615. In the interbank money market, overnight funds traded at 7.5% while one week funds traded at 9.5%. There was no government securities auction, trading was restricted to the secondary market.

The Kenya shilling held firm as corporate activity remained thin ahead of the holidays. Trading was in the range of 103.05/15.

The US dollar was on the defensive following the Federal Reserve hike of interest rates as expected but left it’s rate outlook unchanged, while in the commodities markets, oil price rose lifted by the consistent fall in US crude inventories. International benchmark price was US 62.81 per barrel.

Outlook for the shilling: The shilling is likely to strengthen in last full trading week of the year as markets slow down ahead of the holidays supported by strong seasonal inflows.

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The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates call: 0414-580619, 0392-612648

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