Currency updates from Wednesday’s session

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The Uganda shilling appreciated Wednesday touching this year’s highs of 3640 / 3650 levels.

Traders attributed the shilling strength “to persisting commodity inflows amidst subdued corporate demand.” 

Liquidity conditions in money markets showed signs of easing, according to Absa Bank data. Overnight interbank lending rates averaged 10.68%, down from previous highs, while one-week funds settled at 11.70%

In global currency markets, the U.S. dollar traded within narrow ranges on Wednesday as investors adopted a cautious stance ahead of potential tariff announcements by the Trump administration.

Reports show that the threat of new trade barriers has injected volatility into currency markets with traders hesitant to take aggressive positions until clarity emerges.

The euro edged 0.2% lower against the dollar, slipping to 1.0789, as European exporters braced for potential disruptions to transatlantic trade.