The Uganda shilling traded flat at the 3685/3705 levels against the U.S Dollar on Monday, as the Central Bank of Uganda maintained its key benchmark lending rate at 9.00 per cent.
The regulator noted that risks to inflation were balanced and inflation was expected to rise gradually to around 5 percent by the end of 2019 while the output gap is anticipated to close in 2018/19 amidst signs of increased business confidence in the economy.
Today, outlook is caged to broadly stable local unit, rangebound within the 3680/3705 band against the greenback as bustle on the demand counters decreases.
The U.S dollar slipped lower against other major currencies on Monday amid renewed trade jitters after U.S. President Donald Trump made another twitter intervention into the current trade dispute with China.
Trump complained in a tweet that when a Chinesemade vehicle is sent to the U.S., the tariff is only 2.5%, while American cars exported to China are slapped with a 25% tariff.
The tweet added to fears over the prospect of a trade war between the world’s two largest economies, which investors fear will deal a blow to the global economy and U.S. growth.
The EUR/USD rose 0.33% to $1.2321 after the European Central Bank’s annual report revealed the bank was optimistic on Eurozone growth despite ongoing uncertainties.
The Cable rose by 0.33% to $1.4136, buoyed by positive U.K housing data, showing an improvement in the selling prices of homes with mortgages backed by Nationwide.