Weak dollar appetite improves shilling

The Ugandan shilling traded a notch firmer on Monday as weaker hard currency appetite by merchandise importers lent support to the local currency, a report by Centenary Bank indicates.

“The safe-haven U.S. dollar hovered near a one-week high on Tuesday while the Aussie, euro and Chinese yuan remained under pressure as weak global economic data reignited recession fears,” Centenary Bank said.

Centenary quoted the as trading at 3665/3805 against the dollar buying and selling respectively on Tuesday.

The euro, the most heavily weighted currency in the dollar index, was little changed at $1.0158 after earlier dipping to the weakest since Aug. 5 at 1.0154.

The British pound fell on Monday against a broadly stronger dollar at the start of a week where traders and the Bank of England (BoE) will get the latest insight into the strength of the labour market and price pressures.

Market Outlook: The shilling is forecast to strengthen against the dollar.

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