Business
Shilling recovers more losses on Wednesday
The Ugandan shilling strengthened against the dollar, closing Wednesday’s session at 4105/4115 from opening levels of 4215/4225, supported by strong offshore and month-end dollar inflows and a weaker global dollar.
Shilling recovers more losses on Wednesday
By: Ali Twaha, Journalist @New Vision
________________________
The Ugandan shilling posted more gains against the dollar in Wednesday’s trading session, appreciating from opening levels of 4215/4225 to close the day at 4105/4115. The rally was primarily driven by robust offshore inflows, supported by a softer global dollar following the US midterm elections.
Traders said the move was further accelerated by strong month-end dollar inflows, which significantly outpaced market demand and provided ample hard currency liquidity throughout the session.
In the money markets, liquidity conditions tightened further, with overnight funding rates averaging between 12.50% and 12.75%, as the impact of the recent central bank rate hike continued to permeate the banking sector, according to Absa.
In the money markets, liquidity conditions tightened further, with overnight funding rates averaging between 12.50% and 12.75%, as the impact of the recent central bank rate hike continued to permeate the banking sector, according to Absa.
The report said demand for shilling liquidity remained elevated amid month-end funding requirements and positioning ahead of the treasury bill auction settlements tomorrow.
In the debt market, the treasury bill auction registered strong investor demand, with total bids amounting to sh439b against an offer of sh350b, translating into an overall subscription rate of 125.4%.
The Bank of Uganda accepted sh383.8b in cash proceeds. Yields on the 91-day, 182-day and 364-day tenors cleared at 11.682%, 13.425% and 14.752%, respectively.
In the debt market, the treasury bill auction registered strong investor demand, with total bids amounting to sh439b against an offer of sh350b, translating into an overall subscription rate of 125.4%.
The Bank of Uganda accepted sh383.8b in cash proceeds. Yields on the 91-day, 182-day and 364-day tenors cleared at 11.682%, 13.425% and 14.752%, respectively.