The Uganda shilling saw little movement against the U.S. dollar on Thursday in what was a seesaw session with increased activity across the counters.
Dollar sellers made forays into the market earlier in the day resulting in the home unit gaining some ground.
Late foreign currency demand from interbank players seeking to take advantage pushed the USDUGX currency pair back to the 3660-3690 bracket same as previous day’s close.
Ahead of the weekend, we see some downward pressure on the local unit on account of expected month-end foreign currency demand.
The dollar edged higher against its rivals in yesterday’s trade although gains were limited by a firmer yen on safe-haven demand despite the White Health Organization easing fears about the spread of the deadly coronavirus that origination in China, saying it was “bit too early to consider this event is a public health emergency of international concern.”
The euro remained on the back foot after the European Central Bank held rates steady and signalled loose monetary policy would continue at least until the end of the year as it reviews measures to revive inflation.
Elsewhere, sterling traded at $1.3121, little changed on the day but up 0.9% so far this week as solid UK economic data prompted traders to wind back expectations of a rate cut by the Bank of England at its policy meeting next week.