EAC

The Uganda Shilling shows resilience against U.S dollar

KAMPALA, Uganda–The Uganda shilling traded stable against the U.S dollar on Thursday, partly supported by a local currency tightening operation by the Central Bank.

The USDUGX pair owed solidity to low dollar demand from both inter bank players and importers from the manufacturing, telecom and energy sectors. The pair was quoted at the 3685/3705 levels, same as previous close.

Prior to the weekend, a weaker shilling is still on the cards as greenback demand persists amidst muted activity on the supply counters. 

The U.S dollar rose to a nearly two-week high against a basket of major currencies shrugging off softer economic data as diminishing trade war fears supported sentiment.

The initial jobless claims rose 24,000 to a seasonally adjusted 242,000 in March while the U.S trade deficit widened to $57.60 billion in February from $56.70 billion the prior month.

Supporting the greenback however, was a fall in investor fears over a U.S.-China trade war after Larry Kudlow, director of the White House National Economic Council, suggested the U.S was willing to strike a deal with Beijing with hope that the suggested barriers will come down on both sides.

The EUR/USD fell 0.33% to $1.2235 as Eurozone retail sales and services PMI undershot economists’ forecast.

The GBP/USD fell 0.58% to $1.3998, pressured by a weaker than expected services PMI amid poorer weather in March.