It was a sideways drift for the Uganda shilling with forces of supply and demand in the market nearly equal. Trading held in the range of 3525/35
In the fixed income, yields remained flat as high demand at Uganda debt sale continue to defy budget risk, with attractive yields in comparison to peers given that inflation is way below the Central Bank’s target. Yields printed at 6.82%, 8.100% and 9.549% for 91,182 and 364 day papers.
In the global markets , the US dollar edged lower from a one year high in choppy trading, pressured a little bit by a rise in US weekly jobless claims with investors consolidating gains after a steep rise in previous sessions.
In energy markets, oil prices hit a 3 year high of 80 dollars per barrel for the first time in 3 years as demand continue to outpace supply globally, a scenario that is likely to dampen the current global economic upturn.
Outlook for regional currencies indicate that Zambian, Nigerian and Kenyan currencies are likely to come under pressure due domestic factors while Tanzania and Uganda shilling will remain stable. The stable footing for the local unit is likely to supported by slightly high commodity inflows.
September 24 – October 1, 2021: Weekly financial markets review and outlook with Stephen Kaboyo
Stephen Kaboyo, Founder and Managing Director Alpha Capital Partners
