Currency update from Monday’s session

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The Uganda shilling opened the month trading marginally weaker against the dollar, with pressure seen coming from corporates in the manufacturing sector who bought hard currency on the day, traders said.

The local unit closed the day trading at 3635 / 3645 levels compared to the day’s opening of 3628 / 3638.

Money markets were liquid today with overnight trades averaging at 7.51% according to market data from Absa. The Bank of Uganda will conduct a treasury bill auction on June 4, where a total of sh355b will be on offer.

In the global markets, The U.S. dollar fell sharply Monday, starting the new week on the backfoot as renewed trade tensions increased the possibility of an economic slowdown as the year progresses.

The Dollar Index, which tracks the greenback against a basket of six other currencies, dropped 0.6% to 98.630.

According to investing.com, the dollar slumped after China said on Monday that U.S. President Donald Trump’s accusations that Beijing had violated the consensus reached in Geneva trade talks were "groundless" and promised to take forceful measures to safeguard its interests.