Uganda shilling claws back gains on Thursday
As the local unit edges further into the stronger region, traders are cautiously waiting for any decisive crossover that will technically push the local unit towards the 3525 levels.
Uganda shilling claws back gains on Thursday
By Ali Twaha
Journalists @New Vision
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The Uganda shilling nudged higher on Thursday against the dollar, snapping the 3550 bid and closing at the 3546/3556 levels from the day’s opening of 3550/3560, extending the gradual gains streak, underpinned by dollar-selling interest from commercial banks and pockets of end-of-month inflows.
As the local unit edges further into the stronger region, traders are cautiously waiting for any decisive crossover that will technically push the local unit towards the 3525 levels.
Experts say the shilling is still poised to post additional gains and thus projected to trade range-bound within this strong region between 3525 and 3585 range in the near term.
The money markets were liquid; a total of sh369.1b was borrowed from the domestic market through the treasury bill auction that settled during the session, according to a report by Absa.
Bank of Uganda was therefore prompted to mop up the excess liquidity of up to sh940b through a 7-day repo. The interbank overnight and one-week funding trades averaged at 10.02% and 10.50%, respectively.