The Uganda shilling was marginally weaker against the buck on Monday, with minimal and balanced activity on both the demand and supply counters.
The local currency was constrained within the 3690/3710 levels as dollar demand from interbank players posed some threat to the unit late in the session.
Outlook is biased towards a weaker shilling with the USD/UGX trading range bound at the 3680/3720 levels amidst fairly balanced liquidity in the money market space.
Dollar takes dip against rivals
The U.S. dollar fell against its rivals Monday as downbeat regional manufacturing data weighed on sentiment ahead of Federal Reserve decision due Wednesday.
The downbeat report comes just days ahead of a widely expected Federal Reserve rate hike due Wednesday, though the bulk of attention will likely focus on the central bank’s expectations about rate hikes for the upcoming year, with many predicting a more dovish outlook.
The GBP/USD rose to $1.2623, but gave up some gains as Labor leader Jeremy Corbyn tabled a motion of no confidence in Theresa May after the Prime Minister revealed lawmakers would not have the chance to vote on the Brexit deal until at least Jan. 14.
The Euro was up marginally at $1.1350, having recovered all of its losses when it was hit by weak euro zone data.