The Uganda shilling lost ground against the greenback on Friday quoted at the 3735/3755 levels lower than previous days close. Renewed dollar demand from interbank players and energy sector exerted undue pressure on the home unit late in the session amid a dearth of much anticipated buck supply from charity organisations. Ahead of the week, outlook is biased towards a weaker currency as forex activity expands amidst fairly balanced liquidity in the money market.
Greenback strengthens against rivals
The buck strengthened against a currency basket on Friday as risk appetite deteriorated and steep drop in oil prices added to fears that the global economy is slowing. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, climbed to a one-week high of 96.84 in late trade.
The GBP/USD grew marginally weaker on the Spanish Prime Minister statement that the future EU-U.K relationship should not apply to Gibraltar, a British overseas territory, unless the relationship is decided bilaterally between Spain and the UK, and vowed to veto the draft agreement over the weekend when Theresa May attempts to secure approval of EU leaders.
The Euro fell to one-week lows, with EUR/USD down to $1.1335 after economic data pointed to further signs of a slowdown in the Eurozone economy. The pair may pick up a bid today if Italian government bond yields continue to rise despite lingering budget tensions.