The currency has maintained trading within a narrow range between the 3717 – 3730 trading range as corporates remitted mid-month taxes during the week, Catherine Kijjagulwe, Head of Trading at Absa Bank Uganda said.

The flows from NGOs and commodity exporters were comfortably balanced by the demand tickets that filtered into the market. End-of-month inflows should start trickling into the market during the week and unless there is significant activity on the demand side, the unit is anticipated to maintain trading within a narrow range between the 3680 – 3770 trading levels.

She said Money Markets were fairly liquid during the week with overnight yields trading within the 10.00% -11.50% trading levels. Bank of Uganda held a 5-year and 20-year Treasury Bond auction on Wednesday and yields cleared at averages of 14.750% and 16.250% respectively in an auction that was well subscribed. Bank of Uganda is scheduled to hold a Shs185 billion Treasury Bill auction on Wednesday May 24, 2023.

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The Kenya shilling remained weak overall during the week with continued requirements by dollar buyers. Inflows from the tea sector gave very minimal reprieve. The unit is still likely to trade within the 137.00-140.00 trading levels in the coming days.

“The dollar remained strong overall against most major currencies during the week as markets monitor progress on the US debt ceiling negotiations. A fall in US jobless claims to 242k from 264k was also dollar positive,” she said

The Euro touched highs of $1.0847 (Shs4058) on Thursday but later closed weaker at the $1.0769 (Shs4029) level.

The Pound briefly touched highs of $1.2492 (Shs4673) on Thursday but later settled at the $1.2408 (Shs4642) level.

Brent crude traded at $76.53 (Shs286,331) a barrel and West Texas Intermediate at $72.45 (Shs271,066) a barrel – trading marginally higher with optimism about the debt ceiling negotiations and possible improvement in global demand in the coming months.   Gold traded at $1966 (Shs7.3 Million) an ounce.

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