The Uganda shilling held steady against the dollar due to subsiding demand activity on the back of end month inflows that provided adequate supply during the week ending 31st August 2018.
Trading was in the range of 3750/3760. In the interbank money market, overnight funds traded at 6% while one week traded at 9%.
In the fixed income market, a Treasury bill auction was held with 170billion on offer. Yields slightly dropped across all tenors with 91 day came out at 10.002%, 182 day trading at 11.564% and 364 day at 13.597% . The auction was oversubscribed.
In the regional markets, the Kenya shilling was firm supported by inflows from non government organizations amid subdued demand. Trading was in the range of 100.55/75.
In the International currency markets, the US dollar edged up against its peers, finding support as the latest episode of US-China trade tensions dulled investor risk appetite, with weakness in emerging market currencies also helping lift the dollar. The greenback, which attracts safe haven bids in times of market turmoil and political tensions, drew its latest swell of support as investors braced for the next round of trade talks.
“In the coming weeks, the shilling is seen steady buoyed by subdued market demand. Supply and demand are likely to remain more or less balanced and trading is expected stay within the current range,” says Stephen Kaboyo, an analyst and Managing Director at Alpha Capital Partners.
