Currency updates from Thursday’s session
Liquidity in the money market was ample according to Absa market report with overnight lending rates averaging 10.83%.
The dollar index, which tracks the greenback against a basket of six major currencies, was up 0.5% at 103.85, though it remained near the five-month low of 103.19 hit earlier in the week.
By Ali Twaha
Journalists @New Vision
KAMPALA - The Ugandan shilling was stable on Thursday, trading at 3,660/3,670 levels throughout Thursday’s session as dollar demand and supply remained balanced.
Liquidity in the money market was ample according to Absa market report with overnight lending rates averaging 10.83%. Activity in the secondary market was subdued as traders focused on settling Wednesday’s Treasury bond auction.
In global currency markets, the U.S. dollar strengthened on Thursday after the Federal Reserve signalled it was in no hurry to cut interest rates further this year, citing uncertainties surrounding U.S. trade tariffs.
The British pound remained weaker after the Bank of England held interest rates steady.
Sterling had earlier climbed to a more than four-month high of $1.3015 during early Asian trading but later pulled back to $1.2975 according to Reuters.
The Swiss franc edged lower after the Swiss National Bank cut its policy rate to 0.25%, while Sweden’s crown softened after the country’s central bank left interest rates unchanged.
The dollar index, which tracks the greenback against a basket of six major currencies, was up 0.5% at 103.85, though it remained near the five-month low of 103.19 hit earlier in the week. The euro fell 0.5% to $1.0849.