The Uganda shilling’s movement against the U.S. dollar remained constrained within the 3695-3715 band in a lacklustre trading session on Tuesday.
The session saw minimal activity across the counters, with flows just about evening out on the day. The USDUGX currency pair closed the day little changed from the previous day’s close.
The domestic unit is likely to continue trading within recent ranges if the lull in activity in the local FX market continues to manifest.
The U.S. dollar jumped on Tuesday as upbeat trade news helped lift sentiment, with reports suggesting the U.S. is ready to compromise on some of China’s core demands.
China is pushing the U.S. to remove some of the tariffs imposed in September as part of the phase one trade deal that the two nations are hoping to sign before the end of the year although it’s unclear how much it would give up in return.
The euro stood at $1.1073, having dropped 0.49% not far from a near three-week low of $1.10635 hit in U.S. trade.
Hopes that the Trump administration could roll back some of the tariffs it imposed on goods from China as part of a “phase one” U.S.-China trade deal boosted risk sentiment in financial markets.
Sterling dipped to $1.2873 with the UK’s primary growth engine continuing to struggle. Investors see little likelihood of the sector recovering its lost growth momentum in the months ahead either as Brexit-based uncertainty lingers.