As the festive season sets in and the year end closes in as well, the Uganda Shilling has held on its gains despite the Central Bank’s intervention mid week closing at Ushs 2502/07, to the dollar same as it was at last week’s close. With the major players focusing on end of year tax payments, corporate interest was muted and this trend is expected to hold into year end with the pair trading in the Ushs 2490-15 range.
Yields are expected to firm in the midweek auction as investor appetite remains strong. On the regional scene, the Standard Chartered bank financial markets say, “the Kenya shilling came out strong trading at Kshs 85.60/70, appreciating about 1% as seasonal conversions go through.
The market saw liquidity tightness as tax obligations went through, thus the selloff in the interbank market. The pair is expected to maintain its offered tone into the new year in the Kshs 85.50-86 to the dollar range.
Regarding the Tanzania shilling, as expected last week, the market came off to break the previous strong support level of Tshs 1600 to close at Tshs 1590/95 from the Tshs 1605/10 level. The financial experts at Standard Chartered bank financial markets expect the Tanzania unit to remain strong in the coming week in the Tshs 1580-1600 to the dollar range.
