The Uganda shilling surrendered some of its gains on the first trading day of the week closing a shilling lower than the previous session.
Renewed greenback demand from interbank players and merchant importers exerted undue pressure on the home unit amidst a dearth of much anticipated dollar supply from the agro sector.
Market chatter alludes to a range bound session at the 3670/3720 band with a bias tinge towards a weaker shilling.
Dollar remains unchanged against peers
The U.S dollar was roughly unchanged against its rivals Monday as sterling slipped ahead of a vote on U.K. Prime Minister Theresa May’s “Plan B” Brexit deal.
Investor attention will likely be focused on Fed Chairman Jerome Powell’s news conference and the central bank’s ongoing balance sheet reduction program. Powell’s news conference will follow release of the Fed decision.
The GBP/USD fell to $1.3161 as market switched to the wait and see mode and refrain from placing any directional bets on the Pound ahead of the key vote. However, with the UK PM May not ruling out re-opening the Brexit negotiations with the European Union (EU), the buoyant tone around the GBP remains intact.
The euro rose to $1.1437 amid bond supply rising to positive value, and less EU bond outflow. Besides, loosening monetary policy by the PBoC may spur EU’s export to China, which may underpin the EUR.”
