The Uganda shilling surrendered its previous gains on revived demand by local firms for imports amid the dollar supply dearth. The unit traded at 3830/40.
In other peer markets most of the currencies generally stumbled as the US dollar continued its ascendancy.
In the fixed income market, short term yields continued to soar triggered by rising interest rates as investors focused on the short end in the primary market while positioning for the repricing advantage. BOU was less tolerant of higher rates and was seen capping.
On the global scene, the dollar climbed to a fresh 24-year peak. The greenback pared gains after minutes from the Fed meeting showed dovish undertones. On the other hand, the Sterling slightly rose on the view that the Bank of England was likely to extend its bond purchase program.
In the coming weeks, the shilling is projected to extend its losses. The 3850-resistance level is likely to cave in as typical Q4 demand sets in on account of importers placing Christmas and end year merchandise orders.
