The Uganda Shilling remained stable but leaning towards a mild appreciation on the back of inflows from NGOs and Diaspora remittances amid sparse trading during the week ending 15th December 2017.
Trading was in range of 3605/3615.
This is ahead of Monday’s Monetary Policy meeting which is expected to continue the easing cycle.
In the interbank money market, overnight funds traded at 7.5% while one week funds traded at 9.5%. There was no government securities auction, trading was restricted to the secondary market.
Regional Markets
The Kenya Shilling held firm as corporate activity remained thin ahead of the holidays. Trading was in the range of 103.05/15.
Global Markets
The US dollar was on the defensive following the Federal Reserve hike of interest rates as expected but left it’s rate outlook unchanged, while in the commodities markets, oil price rose lifted by the consistent fall in US crude inventories. International benchmark price was US 62.81 per barrel.
Outlook for the Shilling
According to Stephen Kaboyo, the Managing Director at Alpha Capital Partners, “The [Uganda] Shilling is likely to strengthen in last full trading week of the year as markets slow down ahead of the holidays supported by strong seasonal inflows.”
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