The Uganda Shilling sustained its robust trend against the U.S dollar in a lacklustre trading session on Tuesday, supported by hard currency inflows from a cocktail of sectors to meet demand
Markets

Diminished Foreign Currency Demand improves Uganda Shilling trading

The Uganda Shilling traded flat against the U.S. dollar on Tuesday amid a mixture of diminished foreign currency demand and an overall market lethargy.

A lull in activity across the demand and supply counters left the home unit stuck within the 3745/3765 handle versus the buck.

“We see a familiar narrative with a bullish tinge towards the shilling as market players anticipate some inflows from offshore investors looking to participate in the T-bill auction today.

The U.S. dollar was subdued against its rivals on Tuesday, as investor focus shifted to the U.S. midterm

results, while ongoing strength in sterling, and weaker-than-expected U.S. labour market data also weighed.

The U.S. Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labour demand, showed job openings in September fell to about 7.009m from the prior month, missing expectations for 7.100m.

The Cable was up to $1.3077, not far from earlier high of $1.3096 amid optimism of a Brexit deal. Britain’s Brexit secretary Dominic Raab said “Thumbs up” on his way out of a cabinet meeting to discuss Brexit negotiations, boosting hope that a deal has been reached.

The EUR/USD edged higher to $1.1413, pairing early session gains, which had followed upbeat Eurozone services data.