The Uganda shilling appreciated further against the U.S dollar on the last day of November closing at the 3715/3735 levels stronger than a previous close of 3720/3740.
The local unit rallied against the greenback in recent days, motorized by slow foreign currency demand from importers and corporate firms. We expect a similar narrative in today’s session as the currency clamps on its current gains.
With no primary bond auction this week, a surge in secondary market activity is anticipated amidst fairly balance liquidity.
Greenback shoots up against rivals
The U.S dollar shot up against its peers on Friday, due to safe haven buying, ahead of the G20 summit in Argentina where U.S President Donald Trump was set to meet China’s president Xi Jinping to discuss the ongoing trade dispute between the two countries. A further boost for the greenback came from the Chicago PMI which printed its highest level in 11 months.
The dollar however fell in early Monday trading after Donald Trump announced, over the weekend, that he would not levy any further tariffs on Chinese imports within 90 days to allow for talks between the two countries. The Pound Sterling dove further down as traders remain wary of the outcome of the Brexit parliamentary vote which takes place on December 11.
Traders began pricing in the threat that a hard Brexit could crash the pound and the U.K economy as a whole. The EUR/USD pair closed the day lower than previous where global market unease sparked sell off of the euro in favour of non-risky assets.