The Uganda shilling gained momentum on Thursday buoyed by steady dollar inflows from a cocktail of sectors as corporates settled mid-month taxes.
Scanty dollar demand from interbank players also elevated the shilling to a day’s win locking 10 shillings by session close.
Ahead of the weekend, outlook remains on a stronger unit as FX activities expand amidst high levels of liquidity in the money market space.
The central bank will be holding a T-bill auction next week scheduled on Wednesday with an offer of Ugx 220bn for the 91, 182 and 364 day papers.
Dollar edges higher as demand for safe-haven assets rises
The dollar edged higher as demand for safe-haven assets rose on uncertainties about the path of U.S.-China trade negotiations and broader worries about slowing global growth.
Investors’ anxieties about the global economy were also compounded by comments from U.S. President Donald Trump, who said he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal. Sterling was marginally lower at $1.2950.
The United Kingdom is currently on course to leave the European Union on March 29 without a deal unless British Prime Minister Theresa May can convince the bloc to reopen the divorce agreement she reached in November.
The euro traded lower at $1.1338. The single currency has been stumbling due to weaker-than-expected growth data out of the euro zone and expectations that the European Central Bank will keep monetary policy accommodative this year.