Shilling holds ground amid low activity on both supply & demand counters

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The Uganda shilling was slightly firmer amid low activity on both supply and demand counters, the unit traded just below the 3550 level.

In the bond market, yields held at 15.500% on 15 year curve and 13.100% on the 3 year. Appetite for Uganda government bonds continue to rank among the highest in the frontier markets.

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In the regional markets, the Nigerian, Zambia and Ghana currencies were seen stable while the South Africa rand fell on poor election showing for the ruling party. In Kenya, the currency was little changed but forecast indicate a bearish trend undermined by elevated demand amid scanty inflows.

Globally, the US dollar fell following the statement from the Federal Reserve indicating that it will begin trimming its monthly bond purchase in November, this triggered Wall Street to post solid gains for the week.
Meanwhile in Britain, the sterling weakened as Bank of England kept interest rates unchanged, surprising investors that largely expected BOE to raise borrowing costs as the UK economy showed signs of recovering from the effects of the COVID pandemic.

Forecast for the local currency indicate range bound trading as low activity is expected, typical of mid-month.

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

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