BY STEPHEN KABOYO
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 in the range of 115.70/90.
In global markets,the US dollar hit its highest in two decades against the major currencies while the British pound traded near a 21 month low amid growth concerns. US stocks also gained mainly on corporate earnings .
In energy markets, crude oil futures fell as news of China ‘s mass testing for Covid 19 weighed on sentiment, overshadowing supply side concerns of modest US inventory build and looming risk of further Russian sanctions. Brent crude traded at 103.69 per barrel.
Outlook for the shilling suggest that it will continue to lean on the weaker side with pockets of volatility expected mainly on energy demand and as market players take positions ahead of closure of the fiscal year ending June.
The writer is the managing director at Alpha Capital Partners