Uptick in activity in local FX market saw home unit trade weaker against the dollar later in the day. Commercial banks quoted the USD/UGX pair at the 3738/3758 levels, a little changed from Wednesday’s close.
Ahead of the weekend, the shilling embarks on a cautionary trade amidst growing greenback demand from importers. However, anticipated inflows from charity organizations could keep the shilling at bay during the day.
The money market space was awash with liquidity prompting regulator intervention to mop up a total of Ugx 766.5 billion through a 7 day repo and 28 days and 56 days deposit auctions.
The U.S. dollar held onto recent gains in early trade after U.S. and Chinese officials ended two days of trade talks without any major breakthroughs. The talks between the
two nations ended with an increased new round of U.S. tariffs kicking in on $16 billion worth of imports from China, followed immediately by reciprocal tariffs from
China.
Investor focus turns to the speech by Federal Reserve Chairman Jerome Powell to be held later on today at an annual meeting of central bankers at Jackson Hole,
Wyoming.
The Pound Sterling remained on the defensive as the British government told companies trading with the European Union they would face a tangle of red tape in
case of a hard Brexit.
The Euro edged higher to about $1.154, recouping some losses after shedding more than half percent during the previous session. Data showed Euro zone private sector activity continued to grow in August, albeit at a slower rate than expected.
