Wednesday, March 22, 2023
Home > Markets > Currencies > Shilling Holds Strong As End Of Year Holidays Begin

Shilling Holds Strong As End Of Year Holidays Begin

The Uganda shilling was marginally stronger on account of interbank selloff as commercial banks squared positions ahead of the end of year holidays during the week ending 21st   December 2018. Trading was in the range of 3688/98.

In the fixed income market, a 195billion auction was held; the effective yields came out at 10.798, 11.999, and 13.252% for 91,182 and 364 day tenors respectively. The auction received significant uptake.

In regional currency markets, the Kenya shilling extended gains against the dollar due to tight liquidity conditions as commercial banks sold dollars to meet the shilling reserve requirements amid flat dollar demand. Trading was in the range of 101.45/65.

In the International currency markets, the greenback came off its lows but remained weaker overall after the Federal Reserve guidance on tightening cycle was less dovish than expected. The Fed raised interest rates, while citing the ongoing market volatility and potential slowdowns around the world.

“Outlook for the shilling indicates a choppy market on account of slackened demand due to subdue business activity as major players shut down for the holiday season,” says Stephen Kaboyo, an analyst and Managing Director at Alpha Capital Partners. .

Taddewo William Senyonyi
William is a seasoned business and finance journalist. He is also an agripreneur and a coffee enthusiast.

Leave a Reply

Your email address will not be published. Required fields are marked *