The shilling traded relatively flat versus the greenback in what was a dull Wednesday trading session.
Matching flows on both the demand and supply counters failed to stir the market and left the USDUGX currency pair little changed by the end of the day.
Yesterday’s trading range will likely be preserved as market searches for fresh economic rudiments to give price direction.
The U.S. dollar initially rose against a basket of other major currencies in late Wednesday trading after the U.S. Federal Reserve cut interest rates.
As widely expected, the Fed delivered a 25-basis point cut, but gave an uncertain outlook on future quantitative easing, as Fed officials remained sharply divided over the next rate move, with some arguing for deeper cuts while others desired no further action.
The pound dipped slightly against the dollar following the latest U.K inflation data, which dropped to 1.7%, the lowest level since December 2016. Cable volatility will likely remain closely linked to developments on the Brexit front.
The euro lost ground against the dollar as the market focused on the Fed rate decision. On the data front, Eurozone inflation stayed stable at 1% year-on-year to August, unchanged from the previous month.
Core inflation was similarly stagnant, pointing to an ailing Eurozone economy despite years of monetary stimulus.
