The shilling succumbed to dollar strength on Thursday giving up some of the gains made the previous sessions on account of resurgent appetite for the greenback.
The local currency’s attempt to hold its standing in early trading was squashed later in the day as buyers flowed in to take advantage of the relatively cheap dollar.
Ahead of the weekend, expectations are for the USDUGX pair to remain bound within the current range, with a slight bearish tinge should the recently witnessed demand persists.
Dollar goes broadly lower than peers
The U.S. dollar was broadly lower on Thursday after New York Federal Reserve President John Williams increased bets that the central bank would lower interest rates. Meanwhile, a report showed that while unemployment claims rose slightly last week, the labor market still remained strong. Initial jobless claims rose by 8,000 to a seasonally adjusted figure of 216,000 for the week ending July 13.
The data adds little to arguments for the half-point cut in interest rates that some still expect from the Federal Reserve later this month. The EURUSD pair expended its move to the upside amid a decline of the greenback. The single currency had earlier weakened following a report mentioning that the European Central Bank is considering modifying its inflation target.
Sterling rose on Thursday touching highs of 1.2495 after UK lawmakers approved an amendment that would make it harder for the next Prime Minister to suspend parliament in order to force through Brexit on the 31st of October. Furthermore, data showed that UK retail sales unexpectedly grew 1.00% in June, stoking hopes the economy would avert a downturn in the second quarter.