The Ugandan Shilling was relatively stable with flows from commodity Exeter’s and offshore investors lending support. The unit held in a narrow range of 2715/25.
In the neighbouring Kenya market, the Kenyan Shilling lost ground on elevated dollar demand from various sectors, trading at 137.38, and was kept to surrender more ground.
In the bond market, the 5 and 20-year bond yields held at 14.750% and 16.250%.
The market tendered UGX 726 billion against the offered UGX400 billion. However, the Bank of Uganda was only able to take up UGX226 billion, being mindful of premium bids and their impact on the overall interest rate costs.
In the global markets, the US dollar firmed to a near six-month peak against all majors as optimism over debt ceiling talks raised expectations that US interest rates are likely to stay high for a longer period.
Looking ahead in the coming week, the shilling is likely to be sidelined to the prevailing levels as market activity remains sluggish, with no major market-changing event expected.
