The local foreign exchange market experienced a ramble yesterday with the shilling trading within a narrow band against the U.S. unit.
Paltry dollar inflows just about matched demand for foreign currency from the corporate sector and left the USDUGX currency pair unchanged at 3755-3775 band by the closing bell.
The pair is likely to trade within the latest trading range albeit with a bullish tinge as we anticipate activity to gradually pick up on the foreign currency supply counter.
The dollar was up on Thursday, rallying from its losses during the previous session.
Investors turned to the safe-haven asset after U.S. data said that 1.877 million Americans claimed unemployment during the previous week, higher than the forecasted 1.8 million claims.
Investors are now looking to today’s non-farm payrolls report, due to be released later in the day. Payrolls are forecast to fall by 8 million.
The euro held big gains fetched $1.1338 after the European Central Bank expanded its stimulus more than expected to prop up an economy dealing with its worst recession since World War Two.
Investor confidence in the currency has grown also after Germany last month threw its weight behind the idea of a European Union recovery fund, breaking away from its long-held tradition to resist moves towards fiscal integration in the currency bloc.