TOP
Wednesday,August 05,2020 13:36 PM

Shilling hit by dollar demand

By Vision Reporter

Added 17th March 2020 06:28 PM

The unit consistently traded above 3,700 key level on both sides of the market, with a strong indication that the market was likely to test a new resistance level.

Shilling hit by dollar demand

MONEY.jpg

The unit consistently traded above 3,700 key level on both sides of the market, with a strong indication that the market was likely to test a new resistance level.

CURRENCY

KAMPALA - The Uganda shilling nursed losses on banks and corporate-driven demand, as risk aversion was the dominant theme in currency markets, a report by Stephen Kaboyo of Alpha Capital Partners points out.

The unit consistently traded above 3,700 key level on both sides of the market, with a strong indication that the market was likely to test a new resistance level.

In the fixed income, a treasury bill auction with 225 billion offer was held. Yields remained generally flat at 9.575%, 10.952% and 12.752% for 91,182 and 364-day tenors.

There was a strong appetite at the long end of the market that resulted in Bank of Uganda scooping 240 billion in total over the 175 billion that was announced for the 364 days.

In the regional currency markets, the Kenya shilling held its ground, supported by non-governmental organisation flows and portfolio investors participating in the fixed income market. Trading was in the range of 102.40/68.

In the global markets, the US dollar recovered from the Trump announcement effect that banned travel from Europe.

The depth and liquidity of the US market kept investors on the scramble for the US currency.

In other segments of the market, the Dow plunged 10%, the largest point drop since the Black Monday in 1987. While in commodities, oil prices saw their worst weekly drubbing since the 2008 financial crisis as coronavirus continued to knock demand. Brent crude traded at $33.08 per barrel.

Related articles

More From The Author

More From The Author