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.
Today, we see the local currency trading within the now familiar ranges in the absence of fresh market moving factors.
Rebound in U.S. housing, services activity
The dollar edged higher against its rivals on Tuesday after data showing a rebound in U.S. housing and services activity allayed investor fears about a slowdown in the economy.
The greenback’s advance was pegged back, however, as Federal Reserve members continued to chime in with dovish remarks, expressing support for a continued wait-and-see approach by the U.S. central bank on interest rate changes.
The pound fell to $1.3175, dipping below $1.31 intraday after Bank of England Governor Mark Carney offered a downbeat assessment of the U.K. economy.
The euro was down a shade at $1.1300, hovering near two-week lows versus the greenback amid bets that the European Central Bank meeting on Thursday would indicate a delay in raising rates until next year and soon re-launch long-term bank loans to fight an economic slowdown.