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

Uganda shilling touches recent highs against dollar

The USDUGX pair’s trundle downwards continued on Friday with the local unit touching recent highs versus the dollar.

The dollar sell-off recently witnessed continued in early session, with the home unit settling at the lower end of recent ranges by the end of the day, supported by foreign currency inflows from various sectors of the economy.

In the new week, we expect importers to step up to the plate, taking advantage of the relatively cheap dollar price after sitting on the fence for a few days.

Greenback edges higher against rivals

The U.S dollar edged higher against its rivals on Friday following a rebound in U.S. home sales. The National Association of Realtors report showed existing home sales rose 11.8% in February from a 1.4% decline in the prior month to a seasonally adjusted annual rate of 5.51 million units.

Economists were expecting a 2.2% increase to 5.10 million homes. EUR/USD fell to $1.1285 as German manufacturing PMI plunged to 44.7 in March 2019 from 47.6 in the previous month, well below market expectations of 48, adding to concerns the euro zone economy remains stuck in a rut.

The sterling rose against the dollar as the EU granted the U.K. a two-week extension. The extension was granted to allow the U.K. to consider whether it would opt for a longer delay and take part in European elections in May.