The shilling maintained a bullish stance trading below the new improved support of 3700. The unit recovered its losses ending the downtrend seen in the last couple of months. Market activity was thin, keeping the shilling in the range of 3685/95. In the regional markets, the Kenya shilling slid to a fresh new low, as oil importers were in market to close orders ahead of the holidays. KES was quoted at 122.80. In the fixed income markets, yields at the short end of the market remained relatively flat as Bank of Uganda (BOU) was at it again managing rates. With…
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The Uganda shilling continued to beat expectations and maintained a bullish stance supported by remittances and charities. The unit threatened to break lower the support level of 3750. In the fixed income market, a treasury bill auction with UGX285 billion on offer was held. Yields remained flat with Bank of Uganda cutting off outlier bids. The market bidding behavior reflects a return premium for the greater uncertainty over government fiscal situation. In the global markets, the dollar languished, losing significant value against many of its rivals following weaker than expected US CPI lowering expectation for aggressive Fed rate hikes going…
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The Uganda shilling reversed course and slightly strengthened as end month flows gave support amid subdued demand. The unit traded below the 3800 level for the first time in months. The shilling appreciation bias was expected to be short lived as economic variables in particular inflation painted a bleak picture going forward. In Kenya, the currency took a hit, trading at a fresh record low trading above 120, undermined by elevated demand from oil importers. In the bond market, upward pressure on yields took center stage as markets players slammed huge risk premium on the prices. The worsening fiscal outlook…
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The Uganda shilling firmed in thin trade. Activity was low on both counters. The unit was quoted at 3825/35 in most of the trading sessions of the week. In other peer markets , the narrowing of interest rate differential between the frontier markets and the US is continuing to cause mayhem as the relative interest rate return between local currencies and dollar assets diminish. In the global markets, the US dollar loomed over major peers as treasury yields peaked at multi year high. Gloomy data and down beat corporate outlooks dimmed investor risk appetite . In other major markets, focus…
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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…
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The Uganda shilling marginally gained as it searched for a meaningful direction on either side of 3800 mark. The unit joined a global risk rally amid weakness in the US treasury yields and a dip in dollar value during the week. BOU defensive monetary policy signal also played in support of the shilling trend. In the fixed income market, yields on the 3 and15 year bond continued on the upward, presenting a challenge as the related costs of government borrowing continue to rise .Local investors were seen demanding a higher premium as the fiscal situation stays in focus. Out of…
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The Uganda shilling was caught in crossfire of a strengthening dollar as the local market stayed long USD. Markets remained cautious as weekly losses for risky assets were exacerbated by sterling’s decline in what was a volatile week in the financial markets. The unit held in the range of 3880/90. In fixed income market, yields continued to rise in line with uptick in headline inflation and on the back of currency depreciation. With tight fiscal conditions , government is expected to step up their borrowing efforts in the domestic market to fund a higher fiscal deficit. Short yields cleared at…
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It was choppy trading for the Uganda shilling with mid month effect cooling the demand side. The unit traded pretty much in no- man’s land, unable to break below 3800 level and yet struggling to get above the 3825 . While in the Kenyan market, the currency remained flat with very limited pressure as corporates slowly returned to the market after the announcement of a new administration. KES held at 120.40/60. Elsewhere trading across emerging market currencies remained volatile as the dollar strength continued to dominate over the on going global inflation concerns. In domestic fixed income market, yields held…
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The Uganda shilling firmed in volatile trade that saw both gains and losses. On one hand commodity flows boosted the supply side while pockets of demand were seen from the energy sector. The unit held in a wide range of 3790/3825. In the regional markets, the Kenya shilling was stable trading at 119.75/95, however forecast indicate that the unit was likely to trade with a weakening basis as businesses resumed normal activity after the Supreme Court ruling on the elections dispute. In fixed income markets, yields on the 5 and 10 year bonds traded at 16.250% and 18.500%. The Uganda…
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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…
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