Shilling update from Tuesday’s session

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The Uganda shilling closed Tuesday’s trading session on a slightly strong footing at the 3875/3885 levels from the day’s opening of 3885/3895 levels in an overall quiet day.

According to Absa traders “continued healthy month-end inflows, interbank sellers’ remittance flows” gave the local unit some support.

Meanwhile, money market yields remained elevated with overnight yields at averages of 11.44% and liquidity pockets among a few interbank counterparties.

In the global currency market, the U.S. dollar edged lower Tuesday in limited volatility after the excitement of last week’s central bank meetings and ahead of the release of key inflation data later in the week, reports show.

The Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 103.760, suffering from a minor bout of profit-taking after hitting one-month last week.

On the other hand, the Euro/dollar (EUR/USD) rose 0.2% to 1.0854, helped by the minor dollar weakness, even as European Central Bank officials hinted at rate cuts, starting in the summer.

The pound/dollar (GBP/USD) rose 0.2% to 1.2656 whereas the dollar/yen (USD/JPY) traded 0.1% lower at 151.29.