Shilling firm as dollars come in

The Uganda shilling held firm on account of improved end month inflows during the week, trading within the range of 3595/3600, a report by Alpha Capital Partners Stephen Kaboyo says.  

In the interbank shilling market, overnight funds traded at 8% while the 1 week funds traded at 9%. 

In the fixed income market, sh150b was on offer for the treasury bills. Yields marginally dropped across all tenors to 9.447%, 9.301%, 10.296% for 91,182 and 364 days.

The auction was oversubscribed. In regional currency markets, the Kenya shilling was stable underpinned by strong inflows against weak demand, holding at 103.20/40. 

In the international currency markets, the US dollar was bullish riding on optimism about the fiscal reforms as outlined in the biggest tax overhaul in decades.

"The shilling forecast indicates stability in the coming week, trading in a narrow range, with a slight bias of strengthening as end month inflows spill over into the new month," Kaboyo said.