The shilling drew back to close the day a tad weaker versus its American counterpart in Thursday’s trading session.
Early trading witnessed subdued activity with no drastic swings. As the day progressed, dollar demand gripped the market, absorbing the fading supply as importers took advantage of the somewhat fair levels. In the new day, the USD/UGX pair is likely to remain within the tight but now familiar ranges.
Greenback performs better than major currencies
The U.S. dollar was higher against a basket of the other major currencies in holiday-thinned trade, with many financial markets closed for the Good Friday holiday. Demand for the greenback continued to be underpinned after data on Thursday showed that U.S. retail sales grew at their strongest pace in one-and-a-half years in March.
The pound slipped below the 1.30 lines on Thursday, amid fears that U.K. Prime Minister Theresa May and opposition leader Jeremy Corbyn are unlikely to reach a consensus on a Brexit deal. The Brexit related news dwarfed upbeat UK data, consumer spending, represented by retail sales, and rose 1.1 percent in March, smashing expectations of a negative print.
The euro was slightly higher against the dollar late Friday, with EUR/USD ticking up to 1.1245, after falling to a one-and-a-half week low in the previous session, pressured by weak euro zone PMI data.
