The Uganda shilling stood tall against the dollar in Monday’s trading session that saw ample dollar supply.
The USDUGX currency pair was steady in the morning session. Dollar sellers raided the local foreign exchange market in the afternoon session amid waning dollar demand, to help the local unit appreciate 15 shillings on the day.
Looking ahead, the home unit may continue to be supported by foreign currency inflows that have been witnessed in recent days.
The greenback slipped on Monday as hopes that the U.S and China will reach a trade deal reduced demand for the currency.
Investors await the Federal Reserve meeting this week, where the U.S central bank is expected to cut rates, in addition to home sales and consumer confidence data due today.
The EUR/USD pair traded near 1.1100 levels yesterday, elevated by a positive risk environment that led to a weaker dollar.
The GBP/USD pair traded around 1.2800 lines on Monday, with the pound gaining on reports that the European Union had granted the UK a three-month Brexit extension.
Meanwhile, the UK parliament rejected Johnson’s proposal for a snap election. Nevertheless, he plans to call another vote on a December election today.