Low slung greenback demand boosts continued gain of local currency: The Uganda shilling continued to gain against the U.S. dollar on Thursday as greenback demand maintained its low slung amidst high liquidity in the money market.
The USD/UGX pair leveled at 3660/3680 ranges from 3665/3685 on Wednesday. The Central bank was actively seen in the money market with a mop up of Ugx 1.048 trillion
through the 7 day repo, 28 days and 56 days deposit auction.
Ahead of the weekend, it’s probable that the local currency would continue to clamp on its advance against the U.S. dollar with a boost from the interbank players pruning their
long dollar positions.
The U.S. dollar traded higher against its rivals Thursday, shrugging off a mixed economic data as traders continue to bet a stronger U.S. economy would underpin the
greenback amid lingering trade-war tensions.
The U.S. Department of Labor mentioned the initial jobless claims dropped by 6,000 to a seasonally- adjusted 213,000 for the week ended Aug. 3, beating economists’ forecast for a rise to 220,000.
The Pound Sterling was struggling near one-year lows against the dollar, with GBP/USD at $1.2857 amid growing fears over the prospect of Britain exiting the European Union without a trade deal in place.
The Euro slid against the dollar, with EUR/USD down to $1.1588. The single currency dropped as the greenback continues to pick up a bid ahead of the key CPI release slated today in U.S markets.