KAMPALA, Uganda–The Uganda Shilling sustained deeper wounds in yesterdays’ trading session amidst unrelenting greenback demand from the energy and manufacturing sectors alongside muted dollar supply.
The USDUGX pair maintained its bullish trend, ascending to the 3730/3750 levels from 3725/3745 previously. Ahead of the weekend, a range-bound trading session at the 3725/3755 levels is plausible given demand recent activity.
The money market floats amidst fairly skewed liquidity with interbank overnight rates ranging between the 8.5% – 10% band.
The U.S dollar lost ground against its rivals following negative U.S. data showing a slowdown in the U.S.
housing and labour market. U.S data showed existing home sales fell 2.5% in April from the previous month to a seasonally adjusted annual rate of 5.46 million homes while initial jobless claims rose by 11,000 to a seasonally adjusted 234,000 for the week ended May 19th 2018.
Also weighing on the greenback was a rebound in the Euro and Pound.
The Euro rose 0.27% to $1.1727, against the U.S dollar on Thursday. However, ongoing Italian political
uncertainty kept a lid on upside momentum. The GBP/USD rose 0.25% to $1.3382 as traders cheered better than expected U.K retail sales data, boosting confidence in the economy.