A persistent lack of dollar demand continued to boost the performance of the shilling against the dollar on Tuesday.

Shilling trades within confined ranges against US dollar

The shilling traded within confined ranges against the U.S. dollar on Friday, in a session characterized by minimal activity.

Matching flows on both the demand and supply counters failed to stir the market, and left the USDUGX currency pair unchanged by the end of the day.

Market chatter alludes to range bound trading, with the domestic unit confined within the 3780-3720 furrow against the greenback, as investors search for fresh economic fundamentals to give price direction.


Greenback trades flat against peers

The U.S. dollar was flat on Friday as a slight uptick in core inflation failed to deter expectations that the Federal Reserve will cut rates at the end of July.

The greenback briefly trimmed loses after U.S. data showed produce prices rose slightly in June, up 0.1% following a similar gain in May. In the 12 months through June, the PPI rose 1.7%, the smallest gain since January 2017.

The euro was high versus the dollar on Friday, trading at 1.1270 levels after earlier slipping following comments from ECB Governing Council member Ignazio Visco saying that the bank would need to adopt further expansionary measures if the Eurozone economy does not pick up.

The single currency has been weighed on recently by increasing speculations of another wave of monetary stimulus via cuts and the resumption of the QE program.

Sterling benefitted from dollar weakness printing a fresh daily high at 1.2565 levels. The Pound remains under pressure from a fundamental perspective of UK and Brexit uncertainty.