The tide continued to turn in the Uganda Shilling’s favour during Friday’s trading session as a result of increased foreign currency inflows from commodity exporters.
Markets

Sell off wave from interbank players pushes Uganda shilling

The Uganda shilling changed hands against the dollar in yesterday’s session aided by a sell off wave from interbank players.

Commercial banks quoted the local unit at 3665/3685 levels stronger than previous close of 3675/3695. Outlook remains on a stronger shilling as FX activities expand.

Money market was highly liquid with the overnight and 1wk interbank lending rates running between 7.50-10.5 per cent and 10.25-10.5 per cent respectively.

 

Dollar holds steady against peers

The dollar held steady against its peers, showing little reaction to U.S. President Donald Trump’s State of the Union address which touched upon trade and budget issues but provided investors with few surprises.

In an annual speech outlining his priorities for the coming year, Trump said any trade agreement with China “must include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs.”

GBP/USD fell to $1.2952 as the U.K. services PMI index fell to its lowest level since July 2016, raising concerns about the health of the economy with less than the two months to go until the U.K. departs the European Union.

Losses in the pound against the greenback were exacerbated as fresh concerns of a no-deal Brexit rose to the fore EUR/USD dipped to $1.1410 on mixed eurozone economic data showing a decline in retail sales but better-than-expected growth in the bloc’s services sector.