Currency updates from Wednesday’s session

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Mid-month tax payments triggered interbank players to sell dollars today, which helped the Uganda shilling register gains during the day.

The local currency closed the session trading at 3647 / 3657 levels compared to the opening of 3655 / 3665.

Money markets were liquid according to Absa data with overnight and one-week trades averaging at 10.85% and 11.50%, respectively.

Yields from Wednesday’s treasury bond auction saw an upward shift in yields across all the tenors offered. The benchmark 3-year,10-year, and 20-year maturities cleared at 16.500%, 17.500%, and 17.945%, respectively.

In the global currency market, the U.S. dollar extended losses as U.S. inflation data kept Federal Reserve rate cuts on the table according to media reports.

Data on Tuesday showing softer-than-expected U.S. consumer inflation also provided some relief to investors worried about the inflationary impact of U.S. tariff policies, which had severely undercut expectations of near-term Fed rate cuts.

The U.S. dollar, which has taken a beating recently on the back of economic and policy uncertainty, fell 0.24% against a basket of currencies including the yen and the euro.