The shilling opens the week stronger at 3,623.75/3,633.75 buying and selling respectively
KAMPALA - The shilling recovered from the previous week losses backed up by Bank of Uganda liquidity mop up amidst subdued market activity.
Alpha Capital Partners Stephen Kaboyo noted that Some corporate players were seen liquidating their long dollar positions. Trading was in the range of 3625/3635 buying and selling respectively last week.
On Monday morning, the shilling opened stronger at 3,623.75/3,633.75 buying and selling respectively, according to Bank of Uganda data.
In international currency markets, the dollar was on a bull run following US Federal Reserve downplay of the first quarter economic growth.
The US Federal Reserve Bank kept rates unchanged but sending out strong signals that it was still on track for two rate hikes in the course of the year. The British pound was a touch weaker as markets awaited key economic data from real estate and construction sector.
In commodities, Gold kept a two week low while crude dropped to $46.22 per barrel after data indicated a lower than expected decline in US inventories.
“Outlook indicate a fairly stable shilling holding at the current levels, with some pockets of demand emerging mid- week,” Kaboyo said.