Friday, March 29, 2024
Home > Markets > Currencies > Uganda Shilling Wobbly As Trading Week Ends
CurrenciesFeaturedNews

Uganda Shilling Wobbly As Trading Week Ends

The Uganda shilling was wobbly at the end of the trading week ending January 17th 2019 undermined by elevated demand mainly from interbank as banks covered positions. Trading was in the range of 3685/3695.

In the shilling money market, overnight funds quoted at 6% while one week held at 9%.

In the fixed income market segment, a Treasury bill auction with 225 billion on offer was held. Yields remained generally flat, capping at 9.68%,11.41% and 13.953%. An under subscription was registered at the six month curve.

In the regional markets, the Kenya shilling firmed supported by inflows from commodities, remittances and offshore investors buying stocks amid thin demand. KES was quoted at 100.95/101.15 at close of the week.

In global markets the US dollar was bullish after multiple data releases painted a positive economic picture reversing earlier weaknesses following the preliminary deal between US and China to de- escalate trade wars. Among the economic reports, US retail sales increased for a third straight month while a gauge of manufacturing activity rebounded to its highest level in eight months.

“Forecast for the (Uganda) shilling indicate a stable unit, deriving much of its support from expected flows commodities. The upcoming Chinese New Year holidays will also likely have an impact on market activity going forward,” says Stephen Kaboyo, an analyst and Managing Director at Alpha Capital Partners.

Leave a Reply

Your email address will not be published.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