Shilling tipped to emerge stronger this week
Sep 05, 2016
“Outlook suggests that the shilling may firm up due to limited local shilling liquidity."
KAMPALA - The shilling marginally declined in the early part of last week due to uptick in interbank demand but quickly regained as end month corporate obligations and central mop up operations weighed in.
The market was relatively square.
In the treasury bill auction, yields came off slightly, holding on the trend seen in the last couple of auctions at 14.147%, 15.107% and 16.407%. The auction was oversubscribed. Going by the outturn, there was negligible presence of offshore interest.
In the international currency markets, the US dollar held firm ahead of the US non-farm jobs report which was expected to provide yet again a useful lead on the US interest rates in the near term.
Alpha Capital Partners Stephen Kaboyo noted that the Pound Sterling kept up supported by improved consumer confidence and rising British house prices in August.
"Outlook suggests that the shilling may firm up (this week) due to limited local shilling liquidity and lackluster demand," he said.
The dollar was trading at 3,370.21/3,380.21 buying and selling respectively at most commercial banks in the first trading session on Monday, slightly up from 3,370.82/3,380.82 at the close of business on Friday.