Tuesday’s trading session saw the recent theme of subdued market activity continue, which constrained the domestic unit’s movement against the dollar to within a narrow trading band.
The USDUGX currency pair oscillated within the 3660-3690 trough albeit with a slightly bearish bias as dwindling foreign currency supply from various counters just balanced out with corporate dollar demand.
We see limited investor activity in the interim, and expect the Shilling to hold within recent trading ranges.
The U.S. dollar was lower on Tuesday after consumer confidence came in much lower than anticipated and outlook dampened on the U.S.-China trade conflict.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, slipped to 98.123.
The euro, which was battered by weak eurozone economic data earlier this week, inched up to $1.1001, a hair’s breadth off Monday’s low of $1.0966.
Elsewhere, the British pound found some support after the UK Supreme Court ruled that Prime Minister Boris Johnson’s decision to suspend parliament for five weeks was unlawful in a further blow to his ambition to pull Britain out of European Union next month with or without a deal.