The Uganda shilling closed lower against the U.S. dollar on Tuesday, quoted within the 3810/3830 levels weaker than the previous close.
Markets

Shilling expected to be weak amidst scanty dollar inflows

The Uganda shilling closed lower against the U.S. dollar on Tuesday, quoted within the 3810/3830 levels weaker than the previous close.

The local currency came under pressure late in the day amid thin greenback demand from interbank players and merchant importers.

We expect a familiar narrative in today’s session as foreign currency demand continues to weigh amidst scanty dollar inflows.

Uganda Shilling fragile despite few hours of greenback resistance

The U.S. dollar was on the back foot against its rivals on Tuesday, shrugging off stronger U.S. economic data and the prospect of further monetary policy tightening as the two-day Fed meeting got underway.

The greenback doldrums come as the Federal Reserve kicked off its two-day meeting, which is expected to culminate today in a 25-basis-point interest rate hike to a range of 2.00% to 2.25%.

Global trade tension remained in focus as China’s Vice Commerce Minister Wang Shouwen said Beijing would resume trade talks only if the U.S. show sincerity and not put a knife to China’s throat.

The pound Sterling pushed higher, with GBP/USD rising to $1.3161, but uncertainty over Brexit continued to cloud the outlook.

The Euro rose to $1.1789, on signs that Italy’s anti-establishment coalition is likely to reach a compromise

over its 2019 budget.