Increased dollar demand saw the local unit, Shilling, edge lower against the U.S. unit on Wednesday.
The home unit was down 10 shillings, with the USDUGX currency pair closing the day at the upper range of the recently established 3670-3700 farrow, on the back of increased activity on the foreign currency demand counter.
We see competing forces taking centre stage in the local FX market, limiting the movement of the local unit against the greenback within familiar ranges.
The U.S. dollar remained tentatively on track to snap a four-day losing streak on Wednesday, underpinned by sharp gains against the pound on fears of rocky EU-U.K. trade talks ahead.
The advance in the dollar, however, was also stifled by a fall in Treasury yields on reports that the spread of the virus worldwide continues to gather pace, with a rise in infections across Europe, the U.S. and the Middle East.
The pound was held atto $1.2912 after the EU’s chief negotiator, Michel Barnier, said the bloc would not agree on a deal “at any price” and rebuffed the idea of offering the U.K. a Canada-style trade agreement.
The euro struggled to gain traction with the single currency holding below the $1.088 line versus the greenback.