Markets

The Uganda Shilling devalues further against U.S dollar on Friday

BY CBA

KAMPALA, Uganda–The Uganda Shilling remained on the back foot, devaluing further against its U.S dollar counterpart on Friday as greenback demand from importers and the energy sector persisted.

The USDUGX pair traded within the 3732/3755 band from 3730/3750 levels earlier. This week, market charter alludes to a vulnerable local currency as dreary activity continues to epitomise the greenback supply counters.

This week in the money market arena, securities trading will be limited to the secondary market as the Central Bank stays out of the primary market.

The U.S. dollar rose to a sixth month high as mostly positive U.S. durable goods data suggested the U.S.
economy was strong enough to sustain further Fed rate hikes.

The Commerce Department said on Wednesday Core Durable Goods Orders rose by 0.9% last month, beating economist forecast for a 0.5% rise. The non-defence capital goods orders ex-aircraft, a gauge of business spending, rose by 1%.

The ongoing slump in the euro in the wake of rising Eurozone uncertainty supported further gains in the
greenback. The EUR/USD fell 0.47% to $1.1664 as Spanish Prime Minister Mariano Rajoy faced a noconfidence vote after a judge ruled against the governing Popular Party for corruption charges amidst while Italian political uncertainty.

The GBP/USD fell 0.48% to $1.3316 following the release of U.K. GDP data that was in line with expectations