The Uganda shilling traded stronger against the U.S dollar on Wednesday with the USD/UGX pair plunging to the 3710/3730 levels from 3725/3745 range on Tuesday.

Shilling remains strong against US Dollar

KAMPALA – The Uganda Shilling remained unchanged at the 3725/3745 levels against the U.S. dollar on Wednesday supported by even flows on both demand and supply counters. There was a slight uptick in activity on the local FX market with dollar buyers emerging late in the session, but the early morning greenback inflows proved enough to constrain the USD/UGX pair within the recent pricing. Ahead of the weekend, outlook is baised towards a weaker shilling with the USD/UGX trading range bound at the 3730/3760 rangers as forex activity expands amidst high levels of liquidity in the money market.

Greenback rises against rivals

The U.S. dollar rose against its rivals on Thursday as mostly bullish economic data reaffirmed investor expectations that the U.S. economy remains on solid footing, while a slump in the pound also lifted sentiment. Manufacturing data was mixed, however, as the Philadelphia Fed said its manufacturing index fell to a reading of 12.9 in November, from 21.1 last month. While the Empire State manufacturing index rose 2.3 points in November to a reading of 23.3, the New York Federal Reserve said.

The GBP/USD slumped to $1.2781, not far from a session low of $1.2768 following fresh concerns over the progress of the Brexit deal after a slew of ministers resigned from UK Prime Minister Theresa May’s government, citing opposition to the deal. The Euro tacked to trade at $1.1338. Investors were hopeful after reports out of Italy said that Italian Prime Minister Giuseppe Conte was looking to work with the EU over his government’s 2019 budget, which has been rejected by Brussels.

Source: Commercial Bank of Africa Uganda