The shilling recovered versus the greenback in what was an active day of trading. The Thursday session was characterized by burgeoning foreign currency inflows from investors, after the just concluded T-bill auctions which were massively oversubscribed.
The home unit was further underpinned by subtle appetite for the buck from corporate players, who remained on the sidelines. Looking ahead, it remains to be seen whether the USD/UGX pair will hold on to its newly acquired gains, given that the country’s economic fundamentals remain little changed.
Sino-US trade talks dip greenback
Even as two days of Sino-U.S. trade talks began in Washington on Thursday, the escalating tensions between the two world powers sent investors into risk-off mode, boosting the appeal of the safe-haven yen.
Hopes that the U.S. and China could avoid escalating their trade dispute evaporated as U.S. President Donald Trump claimed that Beijing “broke the deal” and stood firm on plans to raise tariffs on hundreds of billions of dollars in Chinese imports.
The pound rose to 1.3018, but gains were limited amid expectations that Brexit talks between the ruling Conservative and opposition Labour parties are unlikely to result in any meaningful progress to break the deadlock. The euro also continues to drift in a range around $1.12, with no major economic data scheduled for the day.