The Uganda shilling trades flat against U.S dollar on Thursday

The Uganda shilling traded flat at the 3685/3705 levels against the U.S dollar as thin volumes on both greenback demand and supply counters limited any movements in the pair.

Ahead of the weekend, a calm trading session is expected for the local pair amidst reduced foreign currency demand as corporate players settle mid-month tax obligations.

The money market holds onto fairly balanced liquidity as overnight and 1 week interbank lending rates hover at the 9.00 per cent and 9.25 per cent levels respectively.

The U.S dollar rose against a basket of the other major currencies on Thursday as market sentiment recovered after U.S. President Donald Trump toned down his threats of military action in Syria.

Weaker U.S. economic data, however, took some steam out of the greenback rally as jobless claims undershot economists’ forecasts, falling only by 9,000 claims.

The EUR/USD fell 0.31% to $1.2332 as the European Central Bank minutes showed policymakers were concerned about the strength of the euro and remained wary of removing easy monetary policy measures.

The Pound Sterling rose above the 1.42 mark against the U.S dollar bolstered by a hawkish statement from the Brexit secretary, David Davis as he downplayed the notion of financial sector job losses following Brexit.