The Uganda shilling perched on the stable side supported by corporate and interbank market activity and held broadly in the range of 3515/25.In the bond market, investors continued to show huge appetite for the local bonds, with the demand two times over against the offer of 500 billion split into a 3 and 10-year bonds. Yields remained relatively flat at 12.090% for the 3-year bond and 14.390% for the 10 year.In the regional markets, the Kenya shilling held firm at 113.45/55 as the Central Bank of Kenya kept the policy rate unchanged at 7%. Forecast, however, indicates likely easing as…
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The local currency kept a positive outlook, as earlier forecast of increased dollar demand underpinned by the reopening of the economy did not come through at the scale that was expected. Trading volumes remained low keeping the unit within the range of 3520/30.In the fixed income, a record demand was registered, as more than 500 billion in bids were received at the weekly auction.Yields remained generally flat at 6.501%,8.400% and 10.000% for 91, 182 and 364 day tenors.In the regional markets, the major currencies remained sensitive to the global risk sentiment. Kenya, Zambia, Nigeria currencies all slipped undercut by soaring…
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The Uganda shilling ticked slightly higher in thin trading on cautious optimism as the economy opens up. Sustained market inflows also worked in favour of the local unit. Trading was in the range of 3525/35.In African markets, Zambia, Kenya, and Tanzanian currencies were firm on general slow down of demand while Nigerian Naira shed value responding mainly on global energy factors.In the global currencies, the US dollar fell to a two month low against its peers after data showed an expected surge in US consume prices in December. The annual increase is the largest in nearly four decades which could…
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In the first trading week of the year, the Uganda shilling was little changed following a quiet holiday period. Market activity remained low as most market players were yet to fully resume trading. Bid and Ask quotes were 3535/3545In other African markets it was a similar trend mainly underpinned by subdued demand . However in the coming week, the Kenya and Zambia are expected to weaken as activity picks up, while those of Nigeria and Tanzania are likely to hold steady.In the global markets, the US dollar is set to notch weekly gains and could extend the rally on the…
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The Uganda shilling extended its gains on sustained flows mainly from remittances against thin demand. The unit traded within the range of 3560/70. In the fixed income, the treasury bill auction was oversubscribed with high bid to cover ratios of 2.81, 1.84 and 1.37. Yields slightly dropped across the short end of the yield curve and traded at 6.501%, 8.5% and 10.45% respectively . In the global markets, the dollar, Euro and Sterling stabilized on the hopes that some Covid-19 vaccines might be able to neutralize Omicron variant. As a result, markets focus shifted again to the likely moves by…
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The Uganda shilling surrendered some ground shedding off at least 15 units on the back of heavy demand from fuel importers stocking up for end of year. Trading was in the range of 3550/60. In the regional markets, the Kenya shilling equally edged down, pressured by strong energy demand to trade at 112.15/35. Globally the US dollar was set to post a second week of gains, touching a 16 month high. The greenback has been rallying since data showed last week that US inflation in October had hit a 31 year high while other economic indicators also suggested solid economic…
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The Uganda shilling showed its volatile side in recent days having endured a torrid time last week crossing a key level of 3650 against a resurgent dollar. This week how’re the local unit has looked to regain some of its losses in line with emerging market movements.Regionally, the Kenya shilling is expected to weaken on high demand against thin supply in the market, while the currencies of Zambia, Tanzania and South Africa are expected to remain broadly stable underpinned by adequate market flows.Globally, the US dollar was heading to a second consecutive week of decline as sentiment stayed tilted towards…
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The local currency backtracked to hit record lows on demand jitters, testing a key level of 3600. Demand was mainly from oil importers and some interbank activity. In fixed income, government securities auction attracted huge demand as measured by the high bid to cover ratios across the entire curve. The yield on the 91 day held at 6.729%, while at the 6 month and One year, yields slightly went up 23 basis and 45 basis points to trade at 8.332% and10% respectively. Globally the dollar trading was the classic buy the rumour, sell the fact as investors liquidated long dollar…
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The local currency was up against elevated demand, trading weaker touching a key level of 3550 with the bearish mode likely to linger on.In the fixed income, yields on government bonds 5 year and 20year bond continued to hold, printing at 13% and 15.5%.Overall, the falling long term yields and renewed demand for yield by foreign investors may tempt the country to lock in lower rates at the long end of the bond curve.Globally, US dollar edged higher versus major peers but within a narrow range as investors awaited clues on the pace of Federal Reserve policy normalization. On other…
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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 3525/35In 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…
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