The Uganda shilling was set to end the week mostly flat, a bit firmer cushioned by tight liquidity conditions mainly on account of end year corporate tax obligations that sucked out shillings in the market coupled by aggressive mop by the Central Bank through non calendar bond issue across the entire yield curve that collected in excess of 500 billion against a target of 780billion. Trading was in the range of 3755/65.The non calendar issuance highlighted the need by the treasury to raise financing in order to meet end of fiscal year commitments. In other peer markets, most currencies gave…
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The Uganda shilling edged lower against the dollar as the market remained pressured by mainly offshore demand and pockets of demand from energy and manufacturing sectors. Trading held in the range of 3760/70. In the regional currencies, the Kenya shilling eased and hit fresh lows to trade at 117:60/80 as investors remained nervous of a parallel forex market amid dollar shortages.In other notable news, The Central Bank directive on CRR and Net open position for commercial banks and its eventual reversal created mixed signals in the market.In the local debt market, yields at the short end climbed mirroring other peer…
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The Uganda shilling continued to battle a range of headwinds surrendering gains post Bank of Uganda intervention. Foreign portfolio disinvestment was the main driver of the currency weakness during the week. Trading was in the range of 3770/80. A weak shilling has a number of implications for the country’s growth prospects. It reduces the purchasing power, makes imports expensive, fuels inflation, increases the government’s cost of borrowing at the same time making debt servicing difficult.In the regional markets, currencies were on similar decline with Kenya shilling trading at 117:20/40.In fixed income, the outturn in the local bond market was reflective…
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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 on the back foot undermined by an upsurge in demand from importers and interbank. The unit lost its previous week momentum and traded at 3550/60.In fixed income securities market, yields continued to trade flat with BOU seen keeping a tight lid by cutting off speculative bids at the 91-day curve. BOU made up the shortfall by taking more on the 182 and 374-day tenors. Yields printed at 6.601%, 8.000% and 8.899%In the regional markets, the Kenya shilling was stable. However, emerging demand from the energy sector was expected to pile pressure on the currency. Trading held…
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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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