The Uganda Shilling began the week the stronger currency as it pushed the U.S. dollar to a new low.
The local currency’s vibrant trend against the greenback continued on Monday, as sellers’ just about edged demand for foreign currency.
The USD/UGX pair gained about 5 shillings by the closing bell.
We see an increase in midmonth FX activity, where the demand counter, which has been relatively mute, is expected to pick up. This could mitigate a further significant decline in the struggling greenback.
The bounce from lows in cable and the slight uptick in the euro kept the dollar roughly flat. The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.03% to 97.05.
Downside in the greenback, however, was limited by an ongoing decline in the yen on falling demand for safe havens as sentiment on U.S.-China relations continued to improve ahead of the conclusion of their phase one trade deal later this week.
GBP/USD fell to $1.2994 but had been as low as $1.2961 after data showed unexpected weakness in U.K. industrial production and GDP data in November.
The data followed remarks by Bank of England monetary policy member Gertjan Vlieghe, who said he stood ready to back a rate cut if economic growth failed to improve.
EUR/USD rose to $1.1141, with some touting further gains for the single currency on expectations for a hawkish pivot from the European Central Bank.