Shilling to remain stable - Alpha Capital

The Uganda shilling traded within a narrow range as most market players remained out of the market.

Liquidity remained tight in the money market. The unit held within the trading range of 3360/3370.

In the Treasury bill market, BOU auctioned 170 billion. The auction was oversubscribed and yields marginally edged up to 14.928%,15.579% and 17.326% respectively.

The shilling was trading at 3,363.71/3,373.71 buying and selling respectively at most banks at the close of business on Friday slightly down from 3,362.75/3,372.75 in the first trading session of the day.

In international currency markets, the dollar remained bullish boosting equities and pushing US debt yield higher.

The British pound fell against the dollar after data showed weak retail sales fueling prospects of a rate cut by Bank of England sooner than later.

"Outlook for the shilling indicates a stable unit. However there could be slight pickup in activity on account of end month forex requirements but not strong enough to warrant a reversal of current trend," Stephen Kaboyo, the Alpha Capital Markets boss said.