The Uganda shilling held firm supported by inflows from commodities and Non-governmental organizations, Central Bank liquidity mop up, against subdue corporate demand.
Trading was in the range of 3585/3595. In the money market, overnight rates averaged 6% while I week funds traded at 10%.
In other market news, Inflation declined from 7.2% to 6.4% for the month of June largely driven by lower food prices.
In Government securities market, Bank Of Uganda announced the resumption of auctions after a prolonged break , with the 1st auction of the new fiscal year due on 5th July 2017
In international currency markets, the dollar trading was mixed as investors fine-tuned positions ahead of the 4th July long holiday weekend, while the British sterling surged to a three week high on comments attributed to Bank of England that there is a likely need to raise interest rates in the coming months.
The shilling outlook remains stable with range bound trading expected in the coming days.
The writer works with Alpha Capital Forex Bureau: For competitive Forex Rates call: 0414-580619, 0392-61264