Uganda Shilling relatively stable

The Ugandan shilling was relatively stable supported by the Central Bank liquidity mop ups at the end of last week.

On Thursday, the local unit was trading at 3,591/3,601, unchanged from Wednesday close. This was due to subdued demand.

"As the US interest rate hike is imminent, the shilling is likely to weaken marginally as markets watch more closely the commentary on the Federal Reserve stance on rate hike trajectory going forward," Stephen Kaboyo, the CEO of Alpha Partners said.

In the international currency markets, the dollar was bullish amid high US treasury yields.

Kaboyo said that the robust private sector job report for February also provided a positive sentiment and this added to the market expectation that US Federal Reserve was on course to raise interest rates at its next meeting.

In the money market, Overnight rate was 10% while one week money was at 12%.​