The Uganda shilling maintained an upward trend against its foreign counterpart in yesterday’s session locking 10 shillings by the days close.
Increased dollar inflows from various sectors of the economy amid ebbing greenback demand gave the local currency a boost leading to a stronger close.
We see the USD/UGX pair trading within the familiar ranges in the absence of any new developments as FX activities expand amid high levels of liquidity in the money market space.
Greenback falls against basket of major currencies
The U.S. dollar fell against a basket of major currencies pressured by strength in the euro despite growing expectations the European Central Bank will not tighten monetary policy this year.
The fall in the buck comes as Federal Reserve Chairman Jerome Powell played down the possibility of a recession in the United States, reiterating the U.S. economy is on solid footing.
The pound rose to $1.2904 as British Prime Minister Theresa May asked lawmakers for more time to reach an agreement with the European Union on amending the Irish backstop issue.
The euro was up at $1.1330, but the strength could prove short-lived. Traders expect the ECB to hold off raising interest rates this year in a bid to stave off the threat of multiple recessions in the bloc.