The Uganda shilling held steady, trading within range amid low dollar appetite across all sectors. Supply was beefed up by end month conversions. The unit was quoted at 3800/10. The Kenya shilling was equally stable trading at 119.90/120, but was expected to ease on increased dollar demand from oil companies.
In the fixed income market, yields remained relatively flat at 9.000%, 11.499% and 14.000%. With elevated inflation risk and other key metrics, the yields may struggle to remain at the current levels in the near term.
In the global financial markets, September got off a bumpy start as persistent worries about rising interest rates and recession fears hounded stock and bond markets driving the US dollar to higher ground against the major currencies. The markets have priced in a strong dollar for an extended period of time going by the US Federal Reserve rhetoric that they will keep rising interest rates until inflation is controlled.
Forecast for the shilling basing on the technical analysis of its 14 and 30 day weighted moving averages, the unit will trade in bear market alongside weak fundamentals
