In a positive move, the Egyptian pound succeeded in rising against the US dollar, falling below the levels of $ 49 again and recording today 48.7 for buying and 48.8 for selling, according to the Central Bank of Egypt screen.
The dollar’s decline against the pound has continued since the dollar reached the threshold of 50, specifically at 49.55, before witnessing many consecutive declines. The pound’s move is linked to Monday’s harsh incident on Wall Street, when fears of a U.S. recession rose at the beginning of August after employment data and a yen trade crisis led to a 7 percent exit of hot money, according to the Egyptian prime minister.
This temporarily affected the Egyptian pound against the dollar, which was quickly reflected in the one-year dollar/pound futures (shown on Bloomberg), which exceeded 58 at the time. However, with statements from the Japanese side to calm the pace of physical tightening and data from the US side that the economy is still able to avoid economic recession and achieve a safe fall from high inflation levels, the pound has returned to rise and erased losses against the dollar.
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Recent data revealed an improvement and decline in the value of Egypt’s CDS 1Y, a non-payment insurance bond whose decline is positive and has fallen from levels above 500 to 426.7, giving the Egyptian pound and the Egyptian economy more strength.
On the other hand, the EGX succeeded in erasing the losses of August 5 and is currently entering a period of consolidation and trading in limited ranges. It closed the day at 29,460 points, down 0.54%.
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