The local unit continued to make headway against the U.S. dollar in Thursday’s session.
Markets

Dollar inches higher as focus shifts to U.S-China trade deal

The local unit continued to make headway against the U.S. dollar in Thursday’s session.

Sustained foreign currency supply hauled the USDUGX pair lower by 15 shillings on the day. The Shilling’s sentiment has improved in recent days, while the pair’s downward pressure has been exacerbated by the absence of purchases by major corporates in the market.

The outlook remains favourable for the domestic unit, as corporates prepare to settle their mid-month obligations in the coming weeks.

The U.S. dollar inched higher Thursday, on improved risk sentiment amid optimism that the U.S-China trade war may be nearing an end and easing tensions in the Middle East.

As well as positive trade news, de-escalating tensions in the Middle East kept safe-haven currencies on the back foot, underpinning the move higher in the greenback.

The pound was down to $1.3064 after the passage of Prime Minister’s Boris Johnson’s Brexit bill, which sets the stage for the United Kingdom to leave the European Union by January 31.

The euro was roughly flat at $1.111 even as German industrial output topped economists’ forecasts.