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NGO Dollar inflows bolster Uganda Shilling

By Racheal Nabisubi

Added 1st October 2019 09:31 PM

Trading was in the range of 3675/3685 in the interbank money market

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Trading was in the range of 3675/3685 in the interbank money market

 

The Uganda Shilling was stable in the first half of the trading week maintaining a narrow range supported by inflows mainly from non-governmental organisations’ end of month conversions. 

However, the Shilling mildly weakened in the closing session as some demand mainly from the manufacturing sector emerged during the end of the month of September 2019, Stephen Kaboyo of Alpha Capital Partners revealed.

Trading was in the range of 3675/3685 in the interbank money market, overnight and one-week rates held at the previous week’ s level of 7% and 10% respectively.

“This week, the Shilling is likely to trade in a narrow range in spite of pockets of demand emerging from time to time in, underpinned by a fairly long market,” Kaboyo said.

In the fixed income market segment, a treasury bill auction with sh220b on offer was held. There was strong uptake that continued to depress yields.  Yields registered at 8.561%, 10.699% and 11.450% for 91,182 and 364 day tenors.

In the regional currency markets, the Kenya Shilling was stable, trading in a narrow range of 103.75/95 on account of increased diaspora remittances.

In the global markets, the US Dollar index hit its highest level in 2 years after sizeable gains as the heightened risks from political tensions to Sino-US trade war increased its safe-haven lustre.

While in Britain, the Pound Sterling wallowed to a two-week low, following from the EU that the UK had yet to provide legal and operational proposals for an agreement on exiting the bloc.

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