The Uganda shilling continued its bullish trajectory against the dollar in Thursday’s trading session, boosted by ample dollar supply.
Corporate dollar sellers raided the local FX market with hefty ticket deals in the morning session. Some dollar buying ensued later in the day that limited the Shilling’s gains to 20 shillings against its U.S. counterpart at the closing bell.
Market chatter alludes to further appreciation of the home unit if the recent increased activity on the supply counter persists.
The dollar rebound as data from the world’s largest economy indicated a moderate growth pace at the end of 2019. Retails sales and manufacturing activity rose in December while unemployment benefits dropped for the fifth straight week which ensures GDP growth will be comfortably above 2 per cent in the fourth quarter.
The Euro surged to a fresh weekly high, changing course in US trading hours and following an upbeat US Retail Sales report.
Germany released December inflation, but given that it came in-line with the market’s expectations, it passed unnoticed.
Cable-stayed positive around a one-week high level. The advance came after Downing Street’s spokesman confirmed that the Brexit transition period would not be extended further.