Egyptian pound weakens slightly in early trade

Reuters, Monday 7 Feb 2011

On the second day after a week-long closure, Egyptian pound's trading is still on low volume

The Egyptian pound weakened slightly on the second day of trade after a week-long closure caused by political unrest, and traders said state-controlled banks seemed to be selling dollars to support the pound's price.

The pound was trading as low as 5.945 to the dollar on Monday, a new six-year low and down from 5.93 at Sunday's close.

The currency had closed at 5.855 on Jan. 27, the before the week-long closure as protests erupted against President Hosni Mubarak's rule.

"Things are stable. I can't say they're good, but they're not collapsing," said a trader at a Cairo-based bank. "There has been no central bank intervention. It don't think it will do so unless the pound reached 6.1 or 6.2 to the dollar."

Markets, which are working on reduced hours, opened at 10:00 a.m. (0800 GMT) and will close at 1:30 p.m.

Short link: