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Sunday,August 25,2019 04:12 AM

Shilling drops against the dollar

By Racheal Nabisubi

Added 15th November 2016 03:01 PM

"In the coming days the underlying depreciation pressures are likely to hold."

Currency 703x422

"In the coming days the underlying depreciation pressures are likely to hold."

On Tuesday morning, the local currency was trading at 3548/3558 compared to Monday's close of 3543//3553 buying and selling.

This means that the shilling continued to drop against the dollar.

The Uganda shilling was on the back foot undermined by interbank and corporate demand as well as anxiety of the surprise win of Donald Trump in the US elections last week.

In the Treasury bill market, BOU mopped up 160 billion. Yields dropped across all the tenors and came out at 13.418%, 14.197% and 14.899% for 91,182 and 364 day respectively.

"In the global financial markets, currencies tumbled following the results of the US elections with a massive selloff in risk assets as markets remained uncertain about the future of the US economic policies under the incoming Donald Trump administration," Stephen Kaboyo, Alpha Capital boss said.

He added: "In the coming days the underlying depreciation pressures are likely to hold as the market remains short on dollars.

However Kaboyo noted that the shilling could gain some reprieve as corporate players settle the midmonth tax obligations.

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