Volatile trading during an overall quiet Friday session saw the shilling losing some ground to close the day a tad weaker at the 3810/3820 levels driven by pockets of interbank and Corporate demand, a report by Catherine Kijjagulwe, Absa Bank Uganda’s Head of Trading indicated.
“Money Markets were fairly liquid on Friday with overnight yields at averages of 10.60%. Bank of Uganda will hold a UGX 285 billion Treasury Bill auction on Wednesday 26th October 2022,” she said.
There was a slight improvement in dollar flows in the Kenyan market during the week as businesses paid their monthly tax obligations. However, Corporates still need dollars and this has still kept the unit weak within the 121/126 trading ranges. Sterling sank toward the lowest level in a week as investors digested the news that British Prime Minister Liz Truss had quit after just six weeks in office. The euro fell 0.22% to $0.97645, after tracking the move in sterling to an overnight high of $0.98455.