The Uganda shilling traded with a mild appreciation bias following a dovish central bank monetary policy decision to keep the policy rate unchanged . The unit traded in the range of 3515/25.
In the fixed income market, yields remained flat amid huge uptake , trading at 6.501%, 8.039% and 9.180%.Going forward real yields are likely to remain attractive and competitive to both international and domestic investors despite the heightened global risk.
Outlook for other emerging market currencies suggest that on the overall, they will continue to struggle over the coming months as the US Federal Reserve is expected to aggressively tighten monetary policy
In the global markets, the US dollar eased back from a nearly two year high while the Euro reversed course and turned positive as markets awaited details of Central bank policy action.
In the coming week, the shilling is expected to sustain a positive stance benefiting from reduced global risk, robust commodity and portfolio flows as well as better than expected domestic fiscal outturn.
April 8 – April 15, 2022: Weekly financial markets review and outlook with Stephen Kaboyo
Stephen Kaboyo, Founder and Managing Director Alpha Capital Partners
