The Uganda shilling traded flat versus the U.S dollar on Friday in a calm trading session with little activity on both demand and supply counters.
The local unit oscillated within the now familiar narrative of 3725/3745, closing unchanged from previous. Ahead of the week, we see the current trading ranges continuing to hold in the absence of new market influencing factors.
In the money market, there will be a T-bill auction on Wednesday with UGX 195bn on offer. This is broken down into 15bn for the 91day, 35bn for the 182day and 145bn for the 364 day papers. Rates are expected to print close to current levels.
US dollar drops lower against rivals
The U.S. dollar swooped lower against its rivals on Friday, after Federal Reserve Vice Chairman Richard Clarida flagged concerns about global growth and delivered somewhat dovish remarks on monetary policy.
Economic data offered little in the way of support for the greenback, as industrial production fell short of economists’ estimates, Industrial production rose a 0.1% in October which was slightly below the 0.2% rise forecast by economists.
The GBP/USD rose to $1.2832, as traders were relieved that no additional ministers had resigned from UK Prime Minister Theresa May’s government as she prepares to sell her deal to parliament and could face another leadership challenge.
The Euro gained ground against the dollar, with EUR/USD advancing to $1.1413 from hopes that Italy’s Prime Minister Giuseppe Conte is willing to work with the European Union over the country’s 2019 budget, which has been rejected by Brussels.