The dollar traded firmly on Wednesday in anticipation of U.S. inflation data, which even if it comes in softer-than-expected is still likely to be so red hot that steep U.S. interest rate rises will be required to rein it in, a Centenary Bank report indicates.
Bank of Uganda quoted the average shilling level at 3,870.09/80.09 buying and selling respectively at noon, slightly better than 3,870.54/80.54 in the morning session.
“Sterling strengthened against a slightly weaker dollar on Tuesday, with the outlook for UK interest rates in focus after a Bank of England official flagged a further increase,” Centenary Bank said in a report.
The Ugandan shilling traded stable on Tuesday in thin market activity as neighboring Kenya, Uganda’s biggest trading partner, was on holiday as it held a general election, traders said.
Market Outlook: The shilling is forecast to remain stable against the dollar.
