12 April 2014

Uganda: Shilling Posts Strong Recovery-Traders Say

The Ugandan shilling posted a strong recovery registering a 2% appreciation to trade 2510/20 per US dollar with the Central Bank's intervention halting the slide, forex traders say.

The appreciation is in comparison to the last week's trading.

Standard Chartered Bank financial markets team said in a note released today (Apr. 11) that in the week [Apr.7-11], the market saw a renewed interest from yield hunters plus some donor flows with no significant demand leading to the move.

"Yields were unchanged in a relatively quiet market with no primary issues this week," the team said, adding that it expects the market to trade cautiously at these levels as mid-month tax obligations will drain the excess liquidity out of the system.

The team expects the unit to trade in the range of 2500-30 per US dollar in the coming week.

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