Overall market lethargy left the Uganda shilling trading flat against the U.S. currency in Friday’s trading session.
Fickle dollar supply by corporate players was evenly matched by a dearth in activity on the foreign currency demand counter that left the home unit stuck within the 3680-3710 trough versus the dollar.
The USD/UGX currency pair looks settled, and will probably remain within the present levels in the interim, barring fresh factors coming into play.
The U.S. dollar rose on Friday as fears of a 50-basis-point interest rate cut in July abated after the New York President walked back the dovish comments made on Thursday by saying that his speech was not about potential policy action at the upcoming meeting.
The euro fell against the rebounding dollar on Friday as investors ramped up bets for a European Central Bank (ECB) interest rate cut. Focus remains on ECB’s policy meeting on Thursday as investors wait to see what steps Mario Draghi may take to support euro area economy.
The ECB is widely expected to keep rates unchanged, but send out a strong dovish message on forward guidance. The British pound hovered around 1.25 on Friday after its biggest daily jump in more than two months in the previous session, though traders remained focused on the growing risks of a no-deal Brexit.
Although major market expectations favor Boris Johnson to become the UK PM, fueling fears of a hard exit, political development concerning the issue and Wednesday’s Tory leadership voting result will be the key driver for near-term cable moves.