Currency updates from Wednesday’s session

KAMPALA - The Uganda shilling was marginally stronger on Wednesday, with support seen coming from commodity exporters and portfolio investors amidst subdued corporate demand, traders said.

The local unit closed the day trading at 3646 / 3656 compared to the day’s opening of 3650 / 3660.

Money markets were relatively liquid according to Absa market data, with overnight and one-week trades averaging at 10.60% and 11.10%, respectively.

Effective yields from the day’s treasury bill auction edged higher on the 91-day and 364-day maturities by 25 basis points on each tenor, clearing at 12.250% and 15.503% respectively compared to the previous auction.

The 182-day remained flat at 12.699% in an auction where a total of sh470.16b in face value was accepted.

In the global currency market, the dollar fell for a third day against a range of currencies on Wednesday, after U.S. President Donald Trump failed to convince Republican holdouts to back his sweeping tax bill, according to Reuters.

Reuters reported that traders were also wary of U.S. officials potentially angling for a weaker dollar at Group of Seven finance minister meetings underway in Canada.

The Japanese currency, along with safe havens like the Swiss franc and gold, got a lift after CNN on Tuesday reported that new intelligence gathered by the United States suggests Israel is making preparations to strike Iranian nuclear facilities.

The pound hit its highest since February 2022 after data showed UK consumer inflation flared hotter in April than most economists expected, thereby clipping some of the Bank of England's scope to cut rates quickly.

Sterling rose by as much as 0.58% to a session high of $1.347. The euro also rose, up 0.5% at $1.1342.