The Uganda shilling continued its bullish trajectory against the dollar in Thursday’s trading session, boosted by ample dollar supply.
Corporate dollar sellers raided the local FX market with hefty ticket deals in the early hours. Some dollar buying ensued later in the day that limited the local units gains to 5 shillings against its U.S. counterpart at the closing bell.
Market chatter alludes to further appreciation of the home unit if the recent increased activity on the supply counter persists.
The U.S. dollar rose against haven currencies such as the yen and Swiss franc on Thursday but dipped against higher-yielders after reports that the U.S. and China have agreed to cancel trade tariffs, increasing hope that the two sides may sign a trade deal in the coming months.
The euro slipped to $1.1053 after the European Commission cut its growth and inflation forecasts for the next two year.
Elsewhere, sterling fell after the Bank of England cut growth forecasts, expecting the U.K. to grow at half the rate of 2018 due to slowing growth across the globe and the prolonged uncertainty over Brexit.
The bank also hinted that it may cut interest rates soon if that uncertainty continues to depress output.