Currency updates from Wednesday’s session

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The Ugandan shilling remained largely unchanged on Wednesday as appetite for the US dollar continued to soften in the local market, traders said.

The currency traded within a tight range of 3,655 to 3,665 against the greenback throughout the day.

Liquidity in the money markets was sufficient according to data by Absa with overnight interbank lending rates averaging at 10.44% and one-week rates settling at 11.38%.

The Bank of Uganda did not participate in the repurchase agreement (repo) market during the session.

Overall, activity in the secondary bond market remained subdued according to Richard Nsubuga, a market analyst, as investors wait for results from the weekly treasury bill auction held during the session.

In global markets, the US dollar edged higher amid cautious trading as investors awaited the outcome of the Federal Reserve’s latest policy meeting and the announcement of new trade talks between the United States and China.

The euro held steady against the greenback, with EUR/USD trading around 1.1367 after data showed German industrial orders surged by 3.6% month on month in March, media reports show.

The British pound slipped 0.2% to 1.3352 ahead of the Bank of England’s upcoming policy decision, where economists broadly anticipate a 25 basis point interest rate cut amid ongoing concerns over weak economic growth, reports show.

The Japanese yen weakened across the board, with USD/JPY rising 0.6% to 143.33. The move came after news of renewed U.S.-China trade discussions reduced demand for safe-haven assets.