The shilling built on its recent strength in what was a volatile session on Friday, touching recent highs versus the dollar.
Heightened activity was recorded on both demand and supply counters in the local FX market, with the USD/UGX pair struggling to find a definite direction in early trading.
Later in the day, demand for foreign currency from importers was cowed by the week’s accumulation of flows mainly from investors culminating to a strong finish for the local currency.
Focus remains on the forces of demand and supply as market players wait to see if the next key USD/UGX psychological level will be broken ahead of the week.
Dollar ends week lower than major currencies
The U.S. dollar ended the week lower against other major currencies as a tariff hike of 25% from 10% of $200 billion worth of Chinese imports into the U.S. took effect.
President Donald Trump also ordered the preparation of new tariffs on a further $325 billion worth of goods that would mean nearly all of the U.S.’s imports from China will be subject to a 25% tariff.
The U.S. dollar index dropped to 97.20 intraday. GBP/USD traded sideways around the 1.2960 handle as cross-party talks aimed at finding a common ground on Brexit continue to drag on without result.
The euro rose against the dollar, with the EURUSD hitting a high of 1.1250, on account of lower U.S. inflation data, where April U.S. Consumer Price Index (CPI) excluding Food & Energy came in at around 0.1% lower than the estimates.