The Uganda shilling edged slightly higher against the U.S. dollar yesterday on account of increased foreign currency supply.
Markets

Dollar resumes descent against safe-haven currencies as virus spreads

The Uganda shilling edged slightly higher against the U.S. dollar yesterday on account of increased foreign currency supply.

Early morning trade saw the USDUGX currency pair marginally higher amid increased corporate demand for the U.S dollar.

The domestic unit showed renewed energy later in the day and closed the session at the 3700/3720 band stronger than previous close.

Market babble alludes to little change on price movement as players lookout for fresh news that might offer direction to the home unit.

The dollar rebounded on Tuesday as investors turned hopeful that global policymakers would introduce stimulus to cushion the economic impact of the coronavirus outbreak.

The buck started to rise as U.S. stock futures rose and bond yields gained after U.S. President Donald Trump said he would hold a news conference on Tuesday about economic measures in response to the virus.

The euro dropped to $1.1385 as financial markets continue to bet on the European Central Bank cutting its interest rates by 0.10 percentage on Thursday.

Still, with interest rates at minus 0.50%, many investors think the ECB has limited room for additional cuts.

The pound slumped to $1.29 on the eve of the U.K. budget revelation despite expectations the country is set to deliver a big stimulus package and measures to help combat the Covid-19 outbreak.