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The shilling maintained a bullish stance trading below the new improved support of 3700. The unit recovered its losses ending the downtrend seen in the last couple of months. Market activity was thin, keeping the shilling in the range of 3685/95.
In the regional markets, the Kenya shilling slid to a fresh new low, as oil importers were in market to close orders ahead of the holidays. KES was quoted at 122.80.
In the fixed income markets, yields at the short end of the market remained relatively flat as Bank of Uganda (BOU) was at it again managing rates. With domestic fiscal metrics still impaired, BOU scooped 362 billion against the 285 billion that was on offer. The benchmark 91 day printed at 10.999%.
In the global markets, a breath taking surge in US dollar trampled other major currencies supported by healthy US corporate profits. The greenback was still on track for its best year since 2014.
Outlook ahead of festive season indicate that shilling bulls will continue to get the upper hand with room to extend its rally on cyclical supply . Market players were seen managing their topside exposure, remaining short as markets slow down.