The Uganda shilling erased some of its previous day’s losses in Wednesday’s trading session to close a tad stronger versus the dollar.
The recovery of the home unit was evident in the late session after the demand for the buck by interbank and corporate players subsided and pushed the USDUGX currency pair marginal lower.
In today’s trading, the USDUGX pair is likely to keep within a narrow band as the market looks out for headlines to tip the range either way.
The dollar edged higher against its rivals Wednesday, as bullish housing data strengthened expectations that the U.S. economy will remain on solid footing.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose to 97.58.
Sterling jumped by over half a per cent against both the euro and the dollar after an upbeat survey from the Confederation of British Industry and evidence of the new government rapidly increasing spending further dented the case for an interest rate cut from the Bank of England.
GBP/USD rose to $1.312.
The euro was largely flat against the dollar at $1.109 ahead of today’s ECB meeting. In December when ECB met, the euro soared on the back of the central bank’s brighter outlook.
It will be interesting to see whether the ECB changes its inflation target after the 2-day meeting.