The pound traded at its highest level on Wednesday across local lenders between EGP 49.63 and EGP 49.65 for buying and between EGP 49.73 and EGP 49.75 for selling at Suez Canal Bank, Egyptian Arab Land Bank, and QNB Bank.
Meanwhile, the lowest rates ranged between EGP 49.55 and EGP 49.57 for buying and between EGP 49.65 and EGP 49.67 for selling across nine lenders, including National Bank of Egypt, CIB Bank, and Bank of Alexandria.
The pound's weakening coincided with renewed hostilities in the Middle East, heightening concerns over supply disruptions and global energy supplies while threatening the stability of the ceasefire between the US and Iran.
The US revoked sanctions waivers on Iranian oil sales and launched several counterstrikes on Iran on Tuesday. This came after Iran initiated attacks on several oil tankers in the Strait of Hormuz, near Oman, following an increase in maritime traffic, according to Iranian state media.
This ended a roughly 24-day streak, beginning on 14 June, during which the Egyptian pound had steadily strengthened against the US dollar, approaching its pre-US-Israeli war on Iran levels.
The currency strengthened from EGP 51.46, after a series of fluctuations, to EGP 48.88 on Tuesday.
Tuesday's rate was the strongest recorded since the onset of the war on Iran on 28 February and was close to the EGP 48.82 recorded on 1 March.
According to the Central Bank of Egypt (CBE), the pound traded at EGP 49.57 for buying and EGP 49.71 for selling, weakening by EGP 0.83, or 1.7 percent, from Tuesday's rates of EGP 48.74 and EGP 48.88, respectively.
The last time the pound traded around EGP 49.7 was on 23 June, about two weeks ago.
The currency also weakened by EGP 0.70, or 1.43 percent, compared with Sunday's close of EGP 48.86 for buying and EGP 49.00 for selling. This was the first time the pound had returned to this level since the outbreak of the US-Israeli war on Iran on 28 February.
The pound has now depreciated by about EGP 1.7, or 3.6 percent, from its pre-conflict level of EGP 47.99 against the US dollar.
Other currencies strengthen against the pound
The euro strengthened against the pound, trading at EGP 56.55 for buying and EGP 56.72 for selling on Wednesday, compared with EGP 55.72 and EGP 55.89 on Tuesday, and EGP 55.88 and EGP 56.05 on Sunday.
The currency is now almost back to its pre-conflict closing rate of EGP 56.63, recorded on 26 February, two days before the outbreak of the war.
The British pound followed a similar pattern, trading at EGP 66.16 for buying and EGP 66.36 for selling on Wednesday, compared with EGP 65.23 and EGP 65.43 on Tuesday, and EGP 65.24 and EGP 65.44 on Sunday. The currency remains around EGP 1.4 above its pre-conflict level.
Gulf currencies also continued to strengthen against the Egyptian pound.
The Kuwaiti dinar traded at EGP 161.50, compared with EGP 158.93 on Tuesday and EGP 159.35 on Sunday, while the Bahraini dinar rose to EGP 131.85 from EGP 129.66 on Tuesday and EGP 130.01 on Sunday.
The Omani rial rose to EGP 129.12 from EGP 126.97 on Tuesday and EGP 127.62 on Sunday, while the Jordanian dinar traded at EGP 70.21, up from EGP 69.04 on Tuesday and EGP 69.22 on Sunday.
According to CBE data, Gulf currencies have appreciated by between EGP 0.44 and EGP 4.5 against the Egyptian pound since 28 February.
Gold prices fall
The gold sovereign (geneih dahab) traded at EGP 46,440 on Wednesday, down EGP 360 from Tuesday's EGP 46,800 and EGP 880 from Sunday's EGP 47,320, according to gold trading platform iSagha.
Meanwhile, 24-karat gold fell to EGP 6,634.25 on Wednesday, down EGP 51.50 from Tuesday's EGP 6,685.75 and EGP 125.75 from Sunday's EGP 6,760.
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