The Uganda shilling edged lower on Tuesday amidst amplified dollar demand by interbank players looking to beef there long positions.
The USD/UGX traded within the 3690/3710 range by close of the trading session, a few units higher than the previous day’s close.
Market participants expect a range bound trade within the 3700/3740 bracket with a bearish bias towards the local currency as FX activities increase amid high levels of liquidity in the money market space.
Greenback trickles lower against rivals
The U.S dollar trickled lowered against its rivals yesterday as data showed U.S. existing home sales in December fell to their lowest level in more three years. The U.S. housing market slump has been widely attributed to rising mortgage rates at a time when land and labor shortages are tightening the supply of homes, keeping prices higher.
The pound, meanwhile, extended its gains against the greenback from last week on the back of upbeat U.K. labour market data showing employment hit a record.
EUR/USD rose to $1.1368 following weaker business sentiment data from Germany. Analysts remain cautiously optimistic on the single currency on expectations the dollar is set to drift lower.