The Uganda Shilling was relatively stable against the US dollar supported by the Central Bank liquidity mop ups during the week ending February 10, 2017. Demand remained subdued. Trading was in the range of 3590/3600.
In the money market, Overnight rate was 10% while one week money was at 12%.
In the international currency markets, the dollar was bullish amid high US treasury yields. 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.
According to Stephen Kaboyo, a market analyst and Managing Director at Alpha Capital Partners, 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.
Currency Weekly Update: Uganda Shilling Remains Stable
The Uganda Shilling was relatively stable against the US dollar supported by the Central Bank liquidity mop ups during the week ending February 10, 2017. Demand remained subdued. Trading was in the range of 3590/3600.
In the money market, Overnight rate was 10% while one week money was at 12%.
In the international currency markets, the dollar was bullish amid high US treasury yields. 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.
According to Stephen Kaboyo, a market analyst and Managing Director at Alpha Capital Partners, 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.
