“The Uganda shilling gained on the back of improved supply of the dollars."
BANKING & FINANCE
On Thursday morning, the Ugandan shilling traded in the range of 3,591/3,601 stronger than Wednesday’s close of 3,597.63/3,607.63 buying and selling respectively.
“The Uganda shilling gained on the back of improved supply of the dollars mainly from commodity exporters and non-government agencies against thin demand,” said Stephen Kaboyo of Alpha Capital Partners said.
Central Bank liquidity mop ups also played a big part to drive the shilling back through the support level of 3600 on the buy side.
Kaboyo projected this week that the shilling would remain firm holding on it's gains.
“Market demand is expected to remain low against end month improved supply of dollars,” he added.
Trading was in the range of 3580/3600. In the money market, overnight and 1 week rates were at 10% and 12% respectively last week.
In international currency markets, Kaboyo stated that the US dollar steadied against other major currencies after it came clear that the rapid normalization is off the table following the Federal Reserve cautious signal regarding the interest scenario in the US.
In commodities market, oil price plunged by about 5% after OPEC's decision to extend production fell short of market expectations. A barrel traded at USD 51.44.
In fixed income market, 95 billion was on offer for the Treasury bill auction. Yields came out at 10.403%, 11.486% and 13.351% for 91, 182, and 364 days.