Euro, Dollar See New Dip Against Egyptian Pound amid Market Caution

Taarek Refaat

In a continued trend of currency volatility, the euro and US dollar recorded fresh dips against the Egyptian pound during international trading on Saturday, signaling growing market uncertainty and possible shifts in Egypt’s monetary dynamics ahead of the upcoming financial quarter.

According to the latest international trading data, the euro dropped to EGP 56.12, extending its recent decline. The US dollar also edged lower to EGP 48.17, its weakest level in weeks.

These movements come amid a banking holiday in Egypt, with local financial institutions closed for the weekend. Despite the halt in domestic trading, international forex markets remained active, reflecting underlying investor sentiment.

What’s Driving the Decline?

Currency analysts point to several potential factors behind the continued pressure on foreign currencies:

Tighter monetary policy in Egypt has increased demand for the pound, particularly after recent interest rate adjustments by the Central Bank of Egypt (CBE).

Slower-than-expected recovery in the Eurozone and cautious US economic data have weakened both the euro and the dollar against a number of emerging market currencies.

Increased remittances and foreign investment inflows may also be contributing to a stronger Egyptian pound, as confidence in Egypt’s fiscal reforms grows.

CBE Exchange Rates:

US Dollar 48.48 48.62

Euro 56.57 56.74

Pound Sterling 65.05 65.27

Canadian Dollar 35.31 35.42

Danish Krone 7.58 7.60

Norwegian Krone 4.75 4.77

Swedish Krona 5.04 5.06

Swiss Franc 60.12 60.33

Japanese Yen 100 32.90 32.99

Saudi Riyal 12.92 12.95

Kuwaiti Dinar 158.70 159.21