The Uganda Shilling sustained its robust trend against the U.S dollar in a lacklustre trading session on Tuesday, supported by hard currency inflows from a cocktail of sectors to meet demand.
Today on the FX counters, market sentiment alludes for a relatively stable USD/UGX pair, range-bound at the 3720/3760 levels amidst slothful foreign currency demand as corporate firms settle local mid-month tax obligations.
Market players also focus on the Monetary Policy Committee meeting scheduled for Friday, hoping to receive fresh insights on the economy from the Central Bank ahead of the primary Treasury bill auction scheduled for Wednesday.
Greenback rises against rivals
The U.S. dollar rose against its peers Tuesday on higher-than-expected U.S. wholesale inflation plus a rebound in U.S. yields and weakness of the pound as its battering from uncertainty about Brexit continued. The uptick wholesale inflation did little to alter expectations for a December rate hike as 76% of traders continue expect the Fed to hike rates next week.
The Pound Sterling took a big hit at the start of this week after British Prime Minister Theresa May delayed a parliamentary vote on her Brexit deal. The cable suffered further yesterday on media reports that May’s parliamentary colleagues believed they had sufficient numbers to mount a no-confidence vote in her leadership.
The British currency crawled up 0.15 percent to $1.2505 after dropping to $1.2480 overnight. The euro was a shade higher at $1.1330 after shedding 0.3 percent the previous day on the back of risk aversion and a stronger US dollar across the board.