The Uganda shilling was weaker in yesterday’s trading session after the greenback pushed back.
Market activity was slow to pick up as a number of major corporates remained on the sidelines. However, some dollar buying took place later in the session that saw the USDUGX currency pair close 5 shillings higher from the previous day’s close.
In the absence of other mitigating factors, the recently established farrow should hold as flows drive the pair’s direction.
The dollar fell slightly on Tuesday, pressured by losses against safe-haven currencies as the first case of the deadly Chinese coronavirus was reported in the U.S.
The news followed earlier reports that the coronavirus in China had spread, raising fears that a widespread outbreak could disrupt tourism and hurt economic growth.
The pound rose to $1.306 on bullish labour market data showing better-than-expected U.K. wage growth and an unchanged unemployment rate at 3.8% in November.
The euro was down to $1.109 as better January German and Eurozone ZEW data signalled that investor confidence was on the mend ahead of a crucial European Central Bank meeting later this week.
