The Uganda shilling extends week’s gain against U.S. dollar on Friday
Markets

The Uganda shilling extends week’s gain against U.S. dollar on Friday

The Uganda shilling extends week’s gain against U.S. dollar on Friday

The Uganda shilling extends week’s gain against U.S. dollar on Friday helped by dollar inflows from charities and downcast demand from commercial banks and corporates as the latter settled tax obligations.

The local unit end the week stronger against the U.S. dollar at the 3700/3720 from 3830/3840 at week’s start. Market conversation alludes to a stronger shilling with the USD/UGX currency pair holding within the 3680/3750 range.

Meanwhile this week, Bank of Uganda will be holding a Treasury bill auction offering Ugx 170bn for the 91 days ,182 days and 364 days tenors respectively.

The U.S. dollar traded near a two-month high against other currencies on Friday, after the US Federal Reserve indicated that it was on track to start paring back its massive bond-buying programme next month.

The U.S. currency has lately been boosted by trade tensions that powered safe haven demand for the dollar. Markets today will be watching the outcome of a meeting between U.S. President Donald Trump and his Russian counterpart Vladimir Putin amid heightened geopolitical
tensions.

The Pound weakened by more than 0.5% against the U.S. dollar on Friday, following President Donald
Trump’s remarks on Theresa May’s Brexit plan.

President Trump talked about the PM’s new white paper that would probably kill hopes of a U.S.-UK trade deal. Markets are also worried that the EU will demand more concessions from Britain before agreeing to a Brexit deal.

The EUR/USD was subdued, but held above a nine-day trough of $1.1610 touched last week. It was last down 0.1 percent at 1.1677.