The Uganda shilling held steady against the dollar amid muted demand and it further consolidated its position following the Central Bank neutral monetary policy stance during the week ending 16th August 2019.
Trading was in the range
of 3685/3695. In the Interbank money market, overnight funds quoted at 7% while
one week quoted at an average of 10%.
In the fixed income market, a Treasury bill auction with 220 billion on offer
was held. Yields to maturity registered at 8.687%, 10.473% and 11.630% for
91,182 and 364 day. The out turn on 182 and 364 indicated under subscription
with bid to cover ratio of 0.626 and 0.961.
In the regional currency markets the Kenya shilling was stable, supported by
flows mainly from portfolio investors trading at 103.10/30. The forecast
however indicated that currency was likely to ease due to excess liquidity in
the money market.
The Tanzania’s shilling was equally stable cushioned by flows from tourism and
agriculture sectors. Trading was in the range of 2293/2303.
In the International markets, the greenback recovered from its earlier losses
but a gauge of world equity performance edged lower as concerns about global
growth offset investor optimism over a surge in US retail sales.
In the commodities, oil prices fell more than a percentage point, pressured by
mounting recession concerns and a surprise boost in US inventories.
International benchmark Brent crude settled at 58.23 a barrel.
“Forecast for the shilling indicate a relatively stable unit with no major
movement expected on either side of the market as most players remain square,”
says Stephen Kaboyo, an analyst and Managing Director at Alpha Capital
Partners.
