The local foreign exchange market experienced calm on Wednesday with the Uganda shilling trading within a narrow band against the U.S. unit.
Paltry dollar inflows just about matched the demand for foreign currency from the corporate sector and left the USDUGX currency pair a mere 5 shillings higher by the closing bell.
The pair is likely to trade within the latest trading range albeit with a bullish tinge as we anticipate mid-month activity to gradually pick up on the foreign currency supply counter.
The U.S. dollar slipped as traders digested the latest Sino-U.S. trade news. A speech by U.S. Federal Reserve Chairman Jerome Powell also received some focus overnight.
The U.S. dollar index that tracks the greenback against a basket of other currencies slipped to 98.722.
The GBP/USD pair rebounded 0.2% to 1.2227 despite increasingly bitter exchanges between London and other European capitals, which further increased the risk of a disorderly “No-Deal Brexit.”
Elsewhere, EUR/USD gained to $1.0997 as it appeared that Brexit talks between the EU and U.K. had stopped just a few weeks before the two were set to split.