Thursday, August 6, 2020
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Currencies

Shilling Gains Ground On Improved Flows From End Month Charity Conversions, Exports

 The local currency was a touch firmer compared to the week’s opening levels driven, mainly by improved flows from end month charity conversions and a trickle in of export flows. Trading was confined in a range of 3682/92.

The debt market saw TB rates remaining flat, but on the upward at the long end of the curve. On a relative basis, Uganda’s fixed income market continues to provide high yielding status with the yield differential or carry remaining attractive and keeping investors’ appetite for the assets high. 245 billion on offer was snapped up by huge margin.

In the regional markets, stability prevailed in both Kenya and Tanzania currencies. KES recouped its losses of the previous week on account of slow demand with bid and ask at 107.65/85, while TZS was supported by improved flows from agricultural exports to trade at 2315/2325.

In the global markets, the US dollar was on the edge as the Federal Reserve offered no real clues about it s next moves, beyond the pledge of keeping policy easy as fresh surge in Covid 19 infections stalls the economic recovery prospects.
Elsewhere, nervousness about global tensions with China dragged on risk sentiment and added pressure on the major world currencies.

“In the near term, the shilling is likely to hold at the current levels, with no big orders on either counter expected while risk appetite remains generally weaker,” says Stephen Kaboyo, an analyst and Managing Director at Alpha Capital Partners.

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Taddewo William Senyonyi
https://www.facebook.com/senyonyi.taddewo
William is a seasoned business and finance journalist. He is also an agripreneur and a coffee enthusiast.

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