A persistent lack of dollar demand continued to boost the performance of the shilling against the dollar on Tuesday.
Markets

Uganda Shilling advances marginally against greenback

The Uganda shilling advanced marginally against the greenback in yesterday session closing at the 3750/3770 bracket.

The FX counters witnessed an upsurge in foreign currency as increased flows from the charity organizations and exporters dwarfed dwindling demand from corporate players, supporting the shilling to a stronger close.

As flows remain the main determinant on the direction for the USD/UGX pair, it remains to be seen whether the local unit will hold on to its recently acquired gains.

Dollar slightly stronger

The U.S. dollar was slightly stronger against a basket of currencies on Wednesday, holding onto gains from the previous session as concerns over heightened trade tensions between the U.S. and China prompted investors to seek refuge in safe haven assets.

The dollar index is up 2 percent this year. In other news, traders await US GDP which will be released later today. The euro was down trading at 1.1135 on signs of political tensions between Italy and the European Union.

European Union leaders are set to begin the process of filling a number of top EU posts, from the head of the European Commission to the European Central Bank GBP/USD was slightly weaker on Wednesday amid global dollar strength and brexit woes continue to weigh on the pound.