Ugandan Shilling stable, propped by coffee exports

The Uganda Shilling was broadly stable supported by inflows from coffee exports and other commodities against very low demand during the week.

Trading was in the range of 3695/3605.

On Friday, commercial banks quoted the local unit at 3,597/3,607 unchanged from Thursday's close.

In the interbank money market, overnight funds traded at 7% while 1 week money traded at 10%.

In the fixed income space, sh165b was on offer for treasury bills. Yields dropped across the curve to 9.873%, 10.178% and 11.023% for 91, 182, and 364 days respectively.

The CEO of Alpha Capital Partners Stephen Kaboyo stated that in the international markets, Wall Street edged higher but was seen to close well off session highs and the dollar fell on the latest political turmoil in Washington while on the other hand the US Federal Reserve minutes indicated worries about the low inflation environment.

In commodities markets, oil prices recovered from previous losses to trade at $50.43 per barrel.

"Forecasts for the shilling indicate a stable unit with minimal scope to strengthen as end month gets closer," Kaboyo said.

On the other hand, the Kenyan Shilling traded at 34.79/34.89 buying and selling whereas the Tanzanian Shilling traded at 1.61/1.61 buying and selling respectively.