Local unit slightly stronger on Tuesday
Liquidity conditions in the money markets remained ample, with overnight and one-week interbank rates averaging 9.77% and 10.00%, respectively, according to Absa market report.
Traders said the appreciation was supported by anticipated dollar inflows from offshore investors ahead of the scheduled treasury bond auction tomorrow (October 29).
KAMPALA - The Uganda shilling traded marginally stronger against the U.S. dollar on Tuesday, closing at the 3470/3480 levels, compared to the opening of 3475/3495.
Traders said the appreciation was supported by anticipated dollar inflows from offshore investors ahead of the scheduled treasury bond auction tomorrow (October 29).
During the early hours of the trading session, demand from the energy and telecom sectors was observed.
However, this was effectively offset by inflows from commodity exports and end-of-month remittances, which have begun to enter the spot market, traders said. In the near term, the local unit is expected to remain within the 3,430 to 3,500 trading band.
Liquidity conditions in the money markets remained ample, with overnight and one-week interbank rates averaging 9.77% and 10.00%, respectively, according to Absa market report.
In the debt market, the Bank of Uganda is set to reopen benchmark tenors of 3-year, 10-year, and 20-year treasury bonds in Wednesday’s auction, targeting sh234b, sh330b, and sh430b, respectively.