The Uganda shilling edged lower against the U.S dollar on Thursday underpinned by continuous greenback demand from both interbank players and firms in the manufacturing sector.
Minimal activity on the supply counters saw the home unit close lower at the 3705/3725 levels weaker than previous close of 3690/3710.
Ahead of the weekend, outlook remains on a weaker shilling as FX activity expands amid skewed liquidity in the money market space.
Dollar remains flat amid strong rise in pound sterling
The U.S. dollar was flat yesterday as mostly upbeat economic data was offset by strong rise in sterling on bets the U.K. will avoid leaving the EU without a trade deal. The U.S. Department of Labor reported that initial jobless claims dropped by 3,000 to a seasonally adjusted 213,000, beating economists’ forecast for a drop to 216,000.
The GBP/USD pair rose to 1.2970 levels on rejection of Prime Minister May’s deal and the fact that she retains her power by a tight margin after facing a vote of no confidence, as traders continue to bet on the UK securing a withdrawal deal. The UK will release December Retail Sales figures today.
The Euro was lower at 1.1380 levels on the back of poor data out of the EU. The final version of December inflation was confirmed at 1.6% YoY, below November’s reading of 1.9%, exacerbating speculation that the ECB will have to delay its first rate hike.