Analysts Expect Shilling to Be Stable Next Week

The Uganda shilling is seen stable over the next week with a firmer bias on the back of diminishing corporate demand for foreign exchange after falling by 1.2% in the week [from Sept. 22-26] and likely inflows from offshore investors at a Central Bank auction for Treasury bills. Bank of Uganda is due to sell Shs 145 billion ($55 million) worth of Treasury bills next week which could spur inflows from offshore investors.

James Mutuku, the head of financial markets at Standard Chartered Bank says the unit against the US dollar is expected to trade in the range of 2620-2660 in the coming week. At the weekly close on Friday, Sept. 26, commercial banks quoted the shilling at 2,6482,658, much weaker than last week’s close of 2,6152,625. Mutuku said on the buy-side, corporates have slowed down on their demand at the current elevated levels and are likely to sit-out of the market until lower levels are seen in the pairs’ trading.

Source : The Independent

Leave a Reply


Global Markets Sluggish Wednesday

Asian markets were mixed Wednesday as optimism over a potential coronavirus vaccine earlier this week steadily begins to fade. The Nikkei index in Tokyo gained nearly 162 points to finish 0.7% higher, while Sydney’s S&P/ASX, the KOSPI in Seoul and Taiwan’s TSEC index had all earned 0.4% by late afternoon. Hong Kong and Shanghai were […]

Asian, European Markets Begin Week with Significant Gains

Asian markets are on the rise Monday as more and more nations continue to slowly emerge from the lockdowns imposed to halt the coronavirus pandemic. Tokyo’s Nikkei index closed 0.4% higher, despite news earlier in the day that Japan had technically fallen into recession for the first time since 2010 after two straight quarters of […]