Business
Corporate demand keeps shilling weak in Monday’s session
Traders said limited dollar inflows offered little support to the local currency, which weakened to close at 3705/3715 compared to its opening levels of 3690/3700.
Corporate demand keeps shilling weak in Monday’s session
By: Ali Twaha, Journalist @New Vision
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The Uganda shilling began the week on a depreciating trend, pressured by strong corporate dollar demand from the telecommunications, energy, and manufacturing sectors.
Traders said limited dollar inflows offered little support to the local currency, which weakened to close at 3705/3715 compared to its opening levels of 3690/3700.
Liquidity conditions in the money market remained sufficient, according to Absa data, supported by quarter-end government releases and the recent maturities.
In the global markets, the dollar traded on a softer footing overall, extending a recent sell-off after softer-than-expected June US inflation data, which temporarily reduced expectations for aggressive Fed rate hikes.
Reports show that higher oil prices added some counter support via inflation risks, but yield spreads had recently moved against the Greenback. The dollar index was trading in the low 100–101 area by the time of writing this report.
In the global markets, the dollar traded on a softer footing overall, extending a recent sell-off after softer-than-expected June US inflation data, which temporarily reduced expectations for aggressive Fed rate hikes.
Reports show that higher oil prices added some counter support via inflation risks, but yield spreads had recently moved against the Greenback. The dollar index was trading in the low 100–101 area by the time of writing this report.