The home unit trended downwards against the greenback in yesterday’s trading session.
Price action for the USD/UGX pair was largely flow driven, with dollar appetite witnessed in late trading pushing up the pair, amidst trifling foreign currency inflows.
Ahead of the weekend, we expect the USD/UGX pair to trade within the current levels, with a bias towards a stronger shilling if liquidity tightening in the money market space perseveres.
The dollar was flat against a basket of major currencies as mixed U.S. economic data weighed on sentiment ahead of crucial U.S. GDP data due Friday.
The U.S. Department of Labor reported Thursday that initial jobless claims rose by 37,000 to a seasonally adjusted 230,000 for the week ended April 21, missing economists’ forecast for a rise to 199,000.
The pound fell to $1.2895 as pressure continues to mount on U.K. Prime Minister Theresa May to resign despite reports the prime minister may bring her withdrawal agreement back to the House of Common for a fourth vote next week.
Elsewhere, the euro barely recovered from earlier lows after disappointing business surveys from Germany and France. EUR/USD slipped to 1.1146, a level not seen since May 2017.