The Uganda shilling appreciated on the first day of trading, with dollar supply outpacing foreign currency demand, leaving the shilling on the front foot.
Markets

Shilling appreciates as dollar supply outpaces demand

The Uganda shilling appreciated on the first day of trading, with dollar supply outpacing foreign currency demand, leaving the shilling on the front foot.

Tight liquidity assisted the home unit maintain its resilience for the majority of the session, and managed to push the USDUGX currency pair a further 10 shilling lower than the previous close.

The domestic unit’s movement today is likely to remain flowbased, as demand and supply forces battle for supremacy in the local FX scene.

Greenback remains unchanged against rivals

The dollar was roughly unchanged against its rivals Monday as investors digested mixed U.S. retail sales data showing an unexpected rise in January, but a downward revision to December’s sharp decline.

The U.S. dollar index that tracks the greenback against a basket of other currencies was down to 96.993. Traders will be closely monitoring the country’s February inflation figures due later in the day.

The British Pound gained to 1.3213 after news that U.K. Prime Minister Theresa May obtained legally binding Brexit assurances from the European Union (EU). The news raised hopes that May could still secure a divorce deal before Britain’s scheduled March 29 departure date from the EU.

The euro found support against the dollar on the Brexit news and the improvement in risk appetite. The single currency was last up about 0.15 percent at $1.1259.