Currency update from Thursday's session
The local unit continues to trade in this strong region underpinned by sluggish demand from corporates due to the recent settlement of taxes at the end of the financial year.
The shilling is anticipated to trade within the 3580-3630 range in the near term. (File photo)
By Ali Twaha
Journalists @New Vision
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The Ugandan shilling was stable on Thursday, trading in a tight range just below the 3600 handle on the back of dollar flows from commodity exports, well balanced off by the demand from the energy and manufacturing sectors.
The local unit continues to trade in this strong region underpinned by sluggish demand from corporates due to the recent settlement of taxes at the end of the financial year.
Trading is with steady caution, according to Absa, as the local unit overbought indicators started to signal a possibility of an upside impulse from current currency pair support levels. The shilling is anticipated to trade within the 3580-3630 range in the near term.
The money markets have remained liquid during Thursday’s session with overnight and one-week trading at the averages of 9.06% and 9.98%, respectively.
The Central Bank has mopped up excess liquidity from the market, booking up to sh1.158 trillion in the 7-day Repo and sh88.39b in the Band of Uganda Bills of 28- & 84-Day tenors.