The Uganda Shilling was stable backed up by improved forex inflows in a market characterized by very low corporate demand. Trading was in the range of 3637/3647. In the Interbank money market, overnight funds traded at 8% while one week money traded at 9:50%.
In the fixed income market, trading was confined to the secondary market as there was no primary auction.
In the regional markets, the Kenya shilling gained ground on account of strong fx inflows from agricultural exports amidst low demand. Trading was in the range of 107.70/90
In the international currency markets, US dollar bounced back marking the biggest gain in more than three months against a basket of major currencies even as Wall Street recovery from the market rout limited the greenback safe haven. In addition the failure of law makers to agree on the new budget that could potentially cause a shutdown of the US government also remained a key factor.
In commodities markets, oil prices fell after Iran announced plans to boost production and US production hit a record high, fueling sentiment about a sharp rise in global supplies. A barrel traded USD 60.61.
“Outlook for the [Uganda] Shilling suggest a stable unit, with mid month market dynamics taking centre stage in a 4 day trading week,” Stephen Kaboyo, an analyst and Managing Director at Alpha Capital Partners says.
