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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The Uganda shilling was set to end the week on a weaker tone, reversing the gaining streak on rebound of strong demand mainly from importers and commercial banks squaring positions. The unit crossed over into 3800 territory on both bid and ask. In regional currencies, the Kenya shilling weakened to trade at 119.40/60 as business activity resumed after the general elections . With the recent development on UGX/USD a pair, it is expected that inflation numbers will reflect high pass through effects of the shilling weakness going forward. In the fixed income market, the rising trend in yields continued, however…
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The Uganda Shilling pared losses after struggling for momentum against a bullish dollar. The shilling rally was driven mainly by domestic factors that dented demand. Trading was in the range of 3805/15. In other markets the Kenya shilling was stable trading in the range of 119.25/40, as markets were keenly following the post elections developments. In the bond market, the 2 year and 10 year traded at yields of 14% and 16.25%. On a real yield or currency hedged basis, Government of Uganda bonds continue to offer relatively competitive returns, in view of headwinds facing other asset classes. In global…
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The shilling was in a risk off trade as foreign institutional investors continued to reduce their exposure to riskier assets. The currency tested the 3900 level and later retreated to trade at 3875/ 85, tracking a similar trend of almost all frontier market currencies with exception of the Kenya shilling that traded flat as the market slowed down ahead of the national elections. The shilling has lost almost 9% of its value since the beginning of the year. In fixed income markets, demand was greater than the amount on offer in the treasury bills. BOU was restrictive by cutting off…
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The perpetual decline of the shilling continued with the unit touching record lows, inching towards the 3900 levels as offshore investors dollar demand coupled by oil importers demand intensified. The exchange rate remains a key variable in Uganda’s economy; therefore, the sustained depreciation will continue to pose serious economic challenges. In most emerging economies, markets made cautious gains as investors mulled over a possible slowdown in the pace of US Federal Reserve rate hike. In the global markets, the US Federal Reserve jacked up its benchmark rate by three quarter of a percentage point in an effort to cool the…
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The Uganda shilling slumped to an all time record low against the dollar, breaching a crucial psychological level of 3800 on increased demand mainly from offshore portfolio investors exiting the fixed income market. In the regional currencies, the Kenya shilling cooled off as demand for dollars waned as markets were in a wait and see mode, trying to determine the next trading level as elections drew closer.In the fixed income market, resident investors continued to place a risk premium on government paper as government revenues remained structurally low, with short term to medium outlook for public finance looking hazy. While…
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The Uganda shilling weakened early in the week and later recouped some losses in choppy trading as mid month tax payments took away appetite for dollars. Trading was in the range of 3760/70. Elsewhere in the region, the Kenya shilling was on the back foot, touching an all time low of 118.25/45, due to increased dollar demand as election anxiety picked up.In bond market, upbeat demand kept yields relatively flat at 14.750 and 16.750 for the 3 and 5 year bonds. Currently, Uganda’s yield curve from the middle to the long end has been flat, going forward, this is likely…
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The Uganda shilling caught a breather in the early part of week but edged lower against the resurgent dollar at close of week as demand picked up mainly from the energy sector. Trading was in the range of 3750/60. On the monetary policy front, the Central bank hiked the policy rate. The heightened risks to inflation and the shilling have greatly increased the likelihood of a more aggressive interest rate path.In the regional markets, it was more of the same in Kenya and Tanzania, unmatched demand kept the currencies on the edge.In the fixed income yields sustained an upward trajectory…
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