A persistent lack of dollar demand continued to boost the performance of the shilling against the dollar on Tuesday.
Markets

Shilling ends Friday unchanged against dollar

The shilling traded sideways against its American counterpart, though ending the day unchanged from previous close.

Lack of economic news left most of the players sidelined with price action for the USD/UGX pair guided mostly by flows.

Corporate dollar demand remained well matched by foreign currency inflows from various sectors of the economy throughout the day leaving the home unit little changed.

In the new day, we see the local currency trading within the now familiar ranges in the absence of fresh market moving factors.

Greenback gains some ground

The U.S. dollar gained some ground over the weekend as new tariffs took effect in both the U.S. and China, marking the next step in their ongoing trade dispute.

The GBP/USD pair was flat at $1.2157 as the fallout of Prime Minister Boris Johnson’s decision to suspend Britain’s parliament for more than a month started to become apparent.

The euro sank below $1.10 for the first time since May 2017 amid low liquidity on a late-summer trading session. The common currency tumbled even after U.S. President Donald Trump complained Friday, yet again, about the dollar’s strength and the euro’s weakness, which makes American exports less competitive.

Meanwhile, Italian bonds fell as the country’s political crisis took another twist with officials clashing as they attempted to form a new ruling coalition.