Overall market lethargy left the Uganda shilling trading flat against the U.S. currency in Monday’s trading session.
Fickle dollar supply by corporate players was evenly matched by a dearth in activity on the foreign currency demand counter that left the home unit stuck within the 3660-3690 trough versus the greenback.
The USDUGX currency pair looks settled, and will probably remain within the present levels in the interim, barring fresh factors coming into play.
The U.S. dollar gave up early-day gains on Monday, pressured by growing investor expectations the Fed could deliver a rate cut sooner rather than later to cushion the impact from the coronavirus outbreak.
A rapid rise in the number of Covid-19 cases in Iran, Italy, and South Korea over the weekend has increased bets on a near-term Fed rate cut, putting the greenback on the back foot.
The euro rose to $1.0860, but some have downplayed the prospect of a prolonged run higher for the single currency amid signs of a rise on bearish bets on concerns about growth in the Eurozone.
The pound fell to $1.2919 slightly down on the day by 0.22% and despite the US dollar sliding into the lows of the 99 handle. Focus now shifts to March and month-end flows as traders’ position ahead of key events.