The Uganda shilling made advancements against the U.S. dollar in yesterday’s trading session in what was a vibrant start to the new week.
Increased market activity across the foreign currency supply counter, coupled with muted dollar demand from the corporate sector, saw the local unit gain 5 shillings by the closing bell.
Further strengthening of the home unit is on the cards if foreign currency inflows continue to engulf the local FX market.
The U.S. dollar was higher thanks to growing optimism the United States and China are on the verge of reaching a preliminary agreement to scale back their bruising trade war.
The dollar index against a basket of six major currencies stood at 97.556, close to its highest in almost a week.
Focus now shifts to the U.S. ISM non-manufacturing report due later today, which is forecast to show activity accelerated slightly in October.
Elsewhere, sterling fell as the U.K. prepared for an election in December. A spokesperson for Prime Minister Boris Johnson said the government must be prepared to leave the EU without a deal on Jan. 31 and that a Brexit transition period would not be extended after that.
The euro dipped to $1.1150 as investors waited to hear the first official speech from the new head of the European Central Bank at a time of deepening divisions between ECB policymakers over how best to respond to slowing growth in the bloc.
