Shilling to experience mild appreciation next week

Dec 10, 2016

By Friday afternoon, the local unit was quoted at 3,593/3,603 a gain from Thursday's close of 3,609/3,619.

The Uganda shilling recouped some of it losses amid muted demand and improved inflows for the week ending December 9, 2016.

The unit traded in the range of 3595/3605.

By Friday afternoon, the local unit was quoted at 3,593/3,603 a gain from Thursday's close of 3,609/3,619.

"In the coming weeks, it is anticipated that the shilling will remain stable with a mild appreciation bias as markets slow down, demand subsides, against expected improved December inflows ahead of the Christmas holidays," Stephen Kaboyo of Alpha Capital Partners said.

Kaboyo added that markets will also be keenly watching the outcome of the BOU policy meeting.

In the government securities, the treasury bills auction was oversubscribed with yields edging up across all tenors.

Bank of Uganda (BOU) mopped up the targeted amount of 165 billion out of 228 billion tendered.

"In international currency markets, the dollar hit a one week high against other major currencies following the European Central Bank announcement that there will be no tapering of the stimulus to zero," Kaboyo said.

In Britain, the pound was wobbly following the  industrial output data.

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