The Uganda Shilling traded lower at the 3795/3805 levels against the U.S dollar on Tuesday as increased bustle on the greenback demand counters dominated mostly muted supply activity.
The central bank absorbed excess liquidity from the local money market through a 2-day repo. However, this did little to offset bearish sentiment on the home unit for the day.
A further slump of the local unit remains on the cards on the back of an uptick in foreign currency demand from interbank players and the firms in the manufacturing and the energy sectors.
The U.S. dollar inched lower, erasing earlier gains on reports that Canada was ready to make a concession to the United States to resolve their talks over reworking the North American Free Trade Agreement, though lingering anxiety over U.S.-China trade tensions weighed.
Meanwhile, China plans to ask the World Trade Organization (WTO) next week for permission to impose
$7 billion a year in sanctions on the United States, citing Washington’s non-compliance with a ruling in a dispute over U.S. dumping duties.
The GBP/USD shed nearly 0.2% to $1.3010, coming off a high of $1.3087 reached on Monday as arise in optimism over prospects for a Brexit trade deal with the European Union faded.
The strong U.K. jobs and wages data and an extension to Bank of England Governor Mark Carney’s tenure did little to support the Pound Sterling.
The Euro fell to $1.1589, shrugging off data showing that investors remained optimistic about the health of the Eurozone.