The Uganda shilling edged higher against the U.S. dollar on Wednesday supported by inflows from remittances and charity organisations. With greenback demand fading, the home unit was able to lock more gains closing at the 3710/3730 levels stronger than a previous close of 3715/3735.
Market chatter alludes to a range- bound session with a bullish bias towards the shilling. Yields dropped across all tenors in yesterday’s T-bill auction. The 91 day, 182 day and 364 day papers dropped to 11.999, 12.300 and 12.752 per cent from 11.246, 12.786 and 13.503 per cent respectively.
Greenback subdued against rivals
The U.S. dollar was subdued against its rivals on Wednesday as negative U.S. economic data did little to lift sentiment. The greenback has been under pressure due to dovish comments from Federal Reserve policymakers and some unexpectedly weak U.S. economic data indicating that the central bank could slow the pace of interest rate hikes.
The Pound Sterling inched up slightly to $1.2789 after a parliamentary group failed to get the signatures it needed to challenge Prime Minister Theresa May’s leadership. May is in Brussels to discuss Brexit negotiation with President of the European Commission Jean-Claude Juncker.
The Euro gave up gains against the dollar dropping to $1.1384 from a day high of $1.1404, even as reports suggested that Italy may be open to tweaking its draft budget for 2019, potentially easing a rift with the European Union. The reports come as the European Commission gears up to take measures towards disciplining Italy over its draft fiscal plan.