Dollar inflows prop up shilling

Tuesday’s session was quite active with some pockets of Corporate demand that were eventually outweighed by inflows from NGOs and Commodity exporters, Catherine Kijjagulwe, the Head of Trading at Absa Bank Uganda said in a report.

She noted that the shilling closed the day at the 3820/3830 levels from a day’s opening level of 3827/3837. “The Money Markets remained liquid on Tuesday with overnight yields at averages of 10.03%,” Kijjagulwe said.

Hitherto, a report by Centenary Bank indicated the Ugandan shilling weakened on Monday, undermined by increased dollar from importers in the energy sector, traders said.

At the same time, the dollar lost ground against sterling and other major peers on Tuesday as investor sentiment picked up following the UK’s dramatic U-turn over the tax-slashing mini budget that had roiled global markets.

The euro added 0.14% to $0.9859 and touched $0.98655 for the first time since Oct. 6. Sterling jumped 0.36% to $1.1398, approaching Monday’s high of $1.144, the strongest level since Oct. 5.

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