The Uganda shilling was wobbly on uptick of interbank demand as business activity picked up following an Easter holiday break. Trading held in the range of 3525/3535.
In the bond market, yields continued to hold flat with strong demand from market players. The 3-year traded at 12.350% while the 15-year printed at 14.500%. Despite the uncertainty about the future fiscal path, domestic bond valuations continue to offer compelling returns.
In regional markets, the Kenya shilling was seen edging lower trading at 115.45/65, on energy sector demand with low levels of supply, while the Tanzania shilling was broadly stable, supported by agriculture export inflows, trading at 2317/27.
Elsewhere, the major markets tumbled as investors remained cautious on the imminent aggressive rate hike outlook for the US as well as the fallout of the global economy from the recent lockdowns in China. The greenback in particular was little changed against other majors holding on to the Fed’s hawkish posture.
In the energy markets, oil prices were volatile due to the potential European Union ban on Russian oil that triggered supply worries. Brent crude traded at 107.17 per barrel.
Going forward, the shilling is seen trading with a bearish tone, undercut by consistent demand from energy and manufacturing sector as oil prices continue on the upward.
