High demand for foreign currency weakens shilling

Lackluster trading detains Uganda Shilling within range

The Uganda Shilling was stable against the U.S. dollar as parallel activity on both greenback demand and supply counters materialized at week’s start.

Monday’s lackluster trading session left the home unit detained within Friday’s 3695/3715 ranges. The USD/UGX pair is anticipated to settle within the present channels for the day with limited fresh factors coming into play.

The money market lingers amidst relatively tight liquidity as overnight interbank rates hover at the 10.00 per cent mark.

The U.S. dollar was steady against a basket of the other major currencies on Monday as investors positioned themselves ahead of a number of key central banks meetings that could help determine near-term market direction for currencies.

Market participants look ahead to the conclusion of the Fed’s two-day policy meeting on Wednesday, where it will probably flag up its third rate hike this year in September.

The Pound Sterling inched higher to $1.3146 in Monday’s trading session drifting within recent swing points as markets look forward to Thursday’s BoE showing.

Directional momentum rests in the hands of USD traders for today with US consumer spending data in the pipe.

The Euro rose to 1.1713 against its counter party, despite the European Central Bank keeping rates unchanged and reiterating its plan to slowly end its accommodative monetary policy.