The tide continued to turn in the Uganda Shilling’s favour during Friday’s trading session as a result of increased foreign currency inflows from commodity exporters.
An uptick in corporate activity on the supply counter outweighed dollar buyers, thereby exerting downward pressure on the USDUGX currency pair to close 5 shillings lower.
Ahead of the week, expectations are for market activity to pick up, where an increase in dollar demand seems plausible, which could put some downward pressure on the local currency.
Greenback rebounds as soft U.S. data increased bets
The dollar licked its wounds after soft U.S. data increased bets the Federal Reserve will cut rates later this year while the pound hovered near nine-months high on hopes for a delay in Britain’s exit from the European Union.
U.S. manufacturing output fell 0.4 percent in February, weakening for a second straight month, while factory activity in New York State was softer than expected this month with an index reading of 3.7.
The Pound sterling rambled as Prime Minister Theresa May went on a charm offensive to convince Brexiteers in her own party to back her withdrawal deal from the EU in a third vote slated for next week.
EUR/USD gained as traders deliberated in-line Eurozone inflation data. CPI came in at 1.5% and Core CPI gained 1.0%, as both readings matched their estimates.