The Uganda shilling encountered mild volatility in a full trading week after the national elections. The unit slightly dropped in really trading but recovered in thin trade to trade at 3675/3685.
In the fixed income market, demand for Uganda government bonds in the primary market outstripped supply by almost two times. Investors received a yield of 15.150% for a 3 year bond and 16.150 for the 10 year. Government of uganda Bonds continue to stand out as most government bonds including US and European bonds now offer negative yields.
In the regional currencies, the Kenya shilling was stable and was forecasted to trade with a stronger tone, supported by substantial diaspora remittances. Trading was in the range of 100.85/101.05. In other currencies, the South Africa rand traded weaker as a rally in riskier assets driven by hopes of US economic stimulus faded and markets were looking for clues from the incoming Biden Administration.
In the global markets, the US dollar steadied and was set to log in its worst week of the year so far as investors welcomed Joe Biden new government and were seeking out riskier assets.
Outlook for the home unit is expected to remain range bound . The market direction will be influenced by the pace at which business picks up post election.
For competitive Forex Rates VISIT Plot 12 KAMPALA ROAD-CHAM TOWERS SUITE 43: call: 0414-580619, 0392-612648