AfricaPress-Tanzania: THE Tanzanian shilling started the week trading flat against the dollar with inflows from the Non-Governmental Organisations (NGOs) and multinationals cushioning the increased appetite for USD from SMEs and manufacturers that was seen from last week.
According to NMB e-Markets, the trading session on Monday halted at 2307/2339 levels and same trend is expected throughout the week.
The U.S. dollar held firm at a four-week high against its rivals on Monday as an undercurrent of risk aversion swept through currency markets in the backdrop of weak U.S. economic data, knocking the Australian dollar and the euro lower.
With U.S. markets shut for a holiday on Monday and Joe Biden set to be inaugurated as the next U.S. President on Wednesday, major currencies remained within well-worn ranges expecting some volatility later in the week.
The pound started the week down against the dollar and euro on Monday but analysts remained upbeat about the British currency’s prospects and futures data showed the biggest net long position since March 2020.
Global markets started the week ‘risk-off’, as escalating Covid-19 infections took precedence over optimism about vaccinations.
The pound was among the risk-sensitive currencies to fall, while the safe-haven dollar edged up slightly.
The South Africa’s rand started the week on a softer note, as the dollar clung to gains on global markets. The rand traded at 15.2475 versus the dollar, down roughly 0.15 per cent on its previous close.
The dollar was supported by weak U.S. economic data and rising coronavirus cases that made investors cautious about the pace of global economic recovery from the pandemic.
Gold prices rose on Monday, after hitting a 1-1/2-month low earlier in the session, as prospects of a massive US coronavirus relief aid outweighed a stronger dollar and lifted bullion’s appeal as an inflation hedge.
Spot gold rose 0.5 per cent to 1,836.29 US dollars per ounce, after falling to 1,809.90 US dollars, it is the lowest since December 2. U.S. gold futures gained 0.4 per cent to 1,836.80 US dollars.
On the Money Markets, 15bn/- was traded up from 62.5bn/- the previous day exchanging hands between the highs of 4.5 per cent and the lows of 3.5 per cent.
