Market analysis suggests that rates have bottomed out.
The Uganda shilling started off the year on a weaker note, undermined by strong dollar demand from the energy and manufacturing sector. The shilling traded in the range of 3640/3650 last week, a report by Alpha Capital Partners Stephen Kaboyo indicates.
In the fixed income market, sh140b was on offer. Yields came out at 8.307%, 8.217% and 8.978% for 91, 182 and 364 day treasury bills respectively.
Market analysis suggests that rates have bottomed out, breaking the downward trend that has been common for the last couple of months.
In regional markets, the Kenya shilling depreciated and was forecast to lose more ground due to increased dollar demand in the first trading week of year. Trading was in the range of 103/40/60.
In the global markets, the US dollar traded lower despite signs that the December US Non Payroll could come out better than expected. Markets remained unmoved by the recent economic data and the strong odds for a March 2018 interest rate hike.