The Uganda Shilling held steady against the U.S. dollar in yesterday’s session buoyed by parallel activity on both greenback demand and supply counters. The USD/UGX pair closed unchanged at the 3725/3745 levels same as previous.
Market charter alludes for a stable pair, range-bound at the 3720/3760 bracket as foreign currency demand is matched with petite dollar inflows. The money market was highly liquid with the overnight interbank lending rate ranging between 7.00 to 10.50 per cent.
The U.S. dollar slipped on reports that Beijing and Washington are preparing their next stage of trade talks. The conversation came after U.S. President Donald Trump and Chinese President Xi Jinping agreed to pause the planned increase of Jan.1 U.S. tariffs to 25% from 10% on $200 billion of Chinese goods.
However, the tension between the two countries remained high following the arrest of CFO at China’s Huawei Technologies last week. The Pound languished near 20-month lows after British Prime Minister Theresa May postponed a crucial vote on her Brexit deal, raising the risk of a chaotic exit from the European Union.