Sunday, July 12, 2020
Home > Markets > Currencies > Uganda Shilling Stays Fairly Stable Amid Muted Supply & Demand
Currencies

Uganda Shilling Stays Fairly Stable Amid Muted Supply & Demand

It was sideways trading for the local currency, staying fairly stable with no distinct trend as supply and demand remained evenly matched during the week ending June19, 2020.

 The shilling was further backstopped by the Central Bank monetary operations that mopped up excess liquidity in the money markets. The bid and ask held in the range of 3715/3725.

FIXED INCOME MARKET

In fixed income market segment, a Treasury bill auction with 145 billion on offer was held. Yields dropped marginally across all tenors to print at 8.498%,9.646% and 11.750% with investors showing increased appetite for 6 months and 1 year paper.

REGIONAL CURRENCIES

In the of EAC regional markets , the trend of currencies was mixed, with Kenya shilling holding ground, supported by tight liquidity conditions in the money market and improved forex flows. The currency was quoted at 106.36/65. While in Tanzania, the currency was wobbly, undermined by elevated demand from importers and manufacturers against limited inflows. Trading range was 2309/19.

GLOBAL MARKETS

In the global markets, the US dollar strengthened on concerns about a rise in new coronavirus cases that underpinned the demand for safe have assets. The index tracking the dollar against the major currencies was up 0.20%. In the UK, the sterling was on the back foot falling more than 1% against the Euro and the greenback following the Bank of England announcement to increase their bond buying program to bolster the Covid hit economy.

OUTLOOK FOR UGX

“Outlook in the coming week, indicate a stable unit, holding at the current levels with no game changer on the horizon as market players align positions in the last full week of the financial year 19/20,” says Stephen Kaboyo, an analyst and Managing Director at Alpha Capital Partners.

  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
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.

Leave a Reply

Your email address will not be published.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