Currency update from Wednesday’s session

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The Uganda shilling continued to demonstrate strength on Wednesday, supported by strong inflows from commodity exporters and portfolio investors, traders said.

The local unit closed the day trading at 3582 / 3592 compared to the day’s opening of 3600 / 3610.

Money markets were liquid with overnight trades averaging at 9.10%. Yields from the last treasury bond auction this financial year, cleared flat across the 3 benchmarks, reopened today.

The benchmark 2-year, 5-year and 15-year benchmarks cleared at 15.75%, 16.75% and 17.795% respectively in an auction which attracted offshore investors. A total of sh1.120 trillion in face value was accepted.

In the global markets, US annual consumer prices rose at a slower than anticipated pace in May, even as concerns swirled around the potential impact of Trump’s aggressive tariff agenda on inflation.

In the commodities market, Oil prices rose strongly during the day, helped by the US-China trade deal as well as the soft inflation data.

Brent futures had gained 1.5% to $67.87 a barrel and US by the time of writing this report. West Texas Intermediate crude futures traded 1.9% higher to $66.19 per barrel.