The Uganda shilling was under stress trading above the key psychological level of 3800 for the first time in months. Towards closure of the week the unit cooled off, lifted by the Central Bank dollar selling intervention and the hawkish monetary policy stance. This however was seen as temporary respite before persistent demand builds up again. In the regional markets, most Central Banks took similar hawkish actions to curb the soaring inflation across all economies.In the fixed income market, Bank of Uganda privately placed debt in multiple tenors outside the normal schedule. A move seen as raising financing ahead of…
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The Uganda shilling was on a losing streak, trading at its lowest in months plagued by the reality of inflation pressures and high oil import demand. The energy forex requirements dominated the market. The bearish engulfing pattern led the unit to touch 3700 level. In other regional markets the Kenya shilling and Tanzania shilling were largely stable but were expected to weaken on energy demand.In the fixed income market the broader flattening bias is set to persist, signalling the imminent tightening cycle. Yields held at 6.501%, 7.98% and 9.000% for the short term government paper.In the global markets, the US…
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The Uganda shilling posted sharp losses buoyed by a surge in demand from commercial banks, manufacturing and energy sectors. The unit broke through key levels to trade at 3665/75.In the regional currencies, the Kenya shilling faced similar headwinds and was on a losing streak trading at 116:10/20. Elsewhere in peer markets, robust energy demand was driving the weakness of most currencies across the board.In the fixed income, the bond market continued to register sizeable demand at the reopening of the 2 year and 10 year bonds. Yields held at 9.900% and 13.750% respectively.Globally, safe haven currencies including the US dollar…
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The shilling nursed losses testing 100 day low touching 3600 technical level, pressured by substantial demand from commercial banks, energy and manufacturing sectors. The UGX trend was similar to its peers in the region where the Kenya and Tanzania currencies were equally bearish .In the fixed income, the yields have bottomed out as investors expect interest rates to start rising as government leans towards the domestic banking system to fund part of the upcoming fiscal year budget. Yields have held flat for most of Q2 and Q3 of the current year.In the global markets, the dollar climbed and swung to…
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The Uganda shilling slipped amid elevated greenback demand late in the week, wiping off earlier mild gains as a result of some export flows and interbank position unwinding. Trading was in the range of 3535/45.In regional markets, the Kenya shilling traded stable but was expected to ease on increased dollar demand mainly from the energy sector. Trading range was 115.75/95In the global markets, the US dollar fell and nursed its sharpest drop in more than a month against the major currencies after the US Fed raised interest rates by 50 basis points to stamp out the soaring inflation. The Federal…
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The Uganda shilling was wobbly on uptick of interbank demand as business activity picked up following an Easter holiday break. Trading held in the range of 3525/3535.In the bond market, yields continued to hold flat with strong demand from market players. The 3-year traded at 12.350% while the 15-year printed at 14.500%. Despite the uncertainty about the future fiscal path, domestic bond valuations continue to offer compelling returns.In regional markets, the Kenya shilling was seen edging lower trading at 115.45/65, on energy sector demand with low levels of supply, while the Tanzania shilling was broadly stable, supported by agriculture export…
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The Uganda shilling traded with a mild appreciation bias following a dovish central bank monetary policy decision to keep the policy rate unchanged . The unit traded in the range of 3515/25.In the fixed income market, yields remained flat amid huge uptake , trading at 6.501%, 8.039% and 9.180%.Going forward real yields are likely to remain attractive and competitive to both international and domestic investors despite the heightened global risk.Outlook for other emerging market currencies suggest that on the overall, they will continue to struggle over the coming months as the US Federal Reserve is expected to aggressively tighten monetary…
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The Uganda shilling traded firmer, propped up by end month flows that improved supply levels amid subdued demand. Bid and ask held at 3585/95.In fixed income space, yields turned out flat in a hugely oversubscribed auction. Liquidity levels in the banking system remained high and kept a lid on the rates. Yields printed at 6.662%, 8.298% and 9.591% respectively.In the regional markets the Kenya shilling was on the edge, with markets expecting a weakening bias on anticipated demand from energy sector . Trading was in the range of 114.85/115.05. Meanwhile, CBK held its benchmark lending rate at 7% reflecting a…
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The local currency recovered from previous week’s losses amid a slow down in appetite for dollars . On the supply side, inflows from coffee and other commodity traders helped in uplifting the shilling. Trading was in the range of 3580/90.In the fixed income, yields remained flat. The broader flattening bias across the yield curve is likely to persist given the liquidity levels in the banking system. Treasury bills printed at 6.501%,8.224% and 9.801% respectively.In the regional markets, most African currencies bounced back as market sentiment was boosted by the ongoing Russian- Ukraine talks and the positive data on US oil…
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The Uganda shilling surrendered some ground, undercut by a surge in dollar demand from offshore buyers, oil and merchandise importers. The local unit traded just above the 3600 key level for most of the trading sessions.Currency markets in general have not escaped the steep losses and wild swings seen across other asset classes with many facing massive downward pressure.In particular, the Kenya shilling weakened to a new record low due to rising global energy prices triggered by the Ukraine war, touching levels of 114.05/25.In the global markets, the current geopolitical shock is serving as a catalyst to trigger mean reversion…
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