The local currency marginally pulled back, largely driven by interbank market activity while demand from other sectors of the economy remained dull. Trading was in the range of 3520/30In the regional currencies, South African rand, Kenyan shilling , Nigerian naira and Zambian kwacha were all in cautious trade as events in the global markets stoked risk aversion. Kenya shilling in particular was on the edge as demand picked up. Commercial banks quoted KES at 110.10/30In the global markets, the US dollar held below a near one month high as investors focused on two key risks; a potential default by Chinese…
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The local currency underwent a lite volatile spin mainly driven by interbank short covering and some importer demand. Trading held in the range of 3515/30.In fixed income space, government borrowing costs dipped, testing uncharted lows. The bullish supply and demand factors reflect the view that treasury will continue relying on the domestic banking system to plug its revenue shortfalls while demand is expected to remain elevated as lenders find the government securities market as the only viable investment option as the economy struggles.In the regional markets, the Kenya shilling held its ground and was expected to inch up on account…
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The shilling gained boost along with other risk sensitive currencies as investor confidence remained high on account of global markets remaining largely flat as the US Federal Reserve is seen in no hurry to discontinue its massive pandemic stimulus. While on the domestic front inflows from offshore investors and agriculture related flows rendered support. Trading range was 3525/35.In the fixed income, Treasury bill yields traded flat. Demand continued to thrive as global interest rates remained low and hence the interest rate differential that increases the appeal of riskier assets. Yields held at 6.899%,8.751% and 9.700% .In the regional markets, the…
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The local currency traded unchanged, underpinned by seasonal month end flows that improved supply conditions amid sluggish demand. The currency held in the range of 3530/40.In the regional markets, Kenya shilling was stable, but expected to weaken due to increased demand from importers. In addition, the rising COVID-19 cases have heightened fears of more restrictions on economic activity which could pile pressure on the currency. Commercial banks quoted the shilling at 109.65/75.In the global markets, the US dollar traded flat as oil prices slowed after a big advance while US Treasury yields moved higher as markets awaited clues on tapering…
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The local unit was relatively stable with a bit of interbank demand that emerged well managed by the available supply in the market as players squared off. Trading held in the range of 3525/35.In the fixed income market, the record demand at the weekly sale of government securities indicate that the prevailing higher yields compared to other peer markets continue to downplay investor’s concerns about the country’s fiscal outlook. Market players placed orders far in excess of the offered amount and as a result yields slightly edged down to trade at 6.825%, 8.751% and 9.700% for 91,182 and 364 day…
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The Uganda Shilling was slightly firmer on account of subdued demand from the main players in the market. Trading held in a narrow range of 3525/35.In the fixed income market, governments bonds were relatively stable with the yield on 15 year bond dropping 9 basis points to 14.400% as some speculative bids were discarded in order to keep rates under control, while the 3 year bond yield edged up by a little over 100 basis points to trade at 11.390%.In the regional currencies, the Kenya shilling weakened due increased dollar demand from the manufacturing sector coupled by corporate demand for…
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The shilling uptrend gained momentum on interbank sell off that improved supply levels in the market. The unit was quoted at 3545/55, a touch stronger from the week’s opening levels. In the money market liquidity was tight, another factor that propelled the local currency.In fixed income market, yields on 3 month and 6 month paper were slightly weaker on renewed concerns on price and reinvestment risks as outlook on government fiscal position remains uncertain. In order to manage interest rates, BOU eliminated outlier bids by accepting less than what was offered at the 3 month and 6 month curve. Overall…
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The shilling traded with uptrend bias supported by sizeable flows mainly from commodities and portfolio funds targeting the bond market. Market players quoted the shilling at 3540/50.In the bond market, the 500 billion offer on the 5 and 20-year curve attracted overwhelming demand with yields holding at 13.409% and 15.950%. The split in offer, providing a large amount for the 20-year tenor supports the strategy of extending the average maturity of the instruments aimed at managing debt service costs that have remained on the higher side. Regional marketsIn the regional markets, the Kenya shilling was on soft ground trading at…
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It was sideways trading for the local currency crossing over into the new fiscal year, largely underpinned by a sharp slowdown in demand as Covid-19 lockdown measures kept business activity at the bare minimum. Bid and ask quotes held at 3540/50.On another note, the IMF loan approval for the Government of Uganda mainly for purposes of supporting Covid-19 crisis economic recovery generated positive sentiment for the currency. In regional currencies, the Kenya shilling weakened a notch, undercut by demand from energy and manufacturing and was likely to lose more ground on sustained demand. KES traded at 107.85/108.05. Global marketsIn the global financial…
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The Uganda shilling oscillated in a narrow range of 3540/50 mainly on interbank and corporate market activity. Commercials banks were seen covering positions. The unit was a touch weaker after attempting to break beneath a key level of technical support around 3500 over the past couple of weeks.On further analysis of the market import demand remained subdued as a result of shutdown of Kikuubo, the major business hub in Kampala.On the economic front, concerns over the effects of the lockdown on reduction in production, restriction on non-essential business operations and reduced household demand of goods and services are beginning to…
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