The pound traded at its highest level on Monday across eight local lenders between EGP 50.17 and EGP 50.27 for buying and between EGP 50.27 and EGP 50.37 for selling at Arab International Bank, Suez Canal Bank, and HSBC Bank.
Meanwhile, the lowest rates ranged between EGP 50.14 and EGP 50.15 for buying and EGP 50.24 and EGP 50.25 for selling at Al Baraka Bank, National Bank of Kuwait (NBK), CIB Bank, and Crédit Agricole.
According to Central Bank of Egypt (CBE) data, the pound weakened to EGP 50.16 for buying and EGP 50.3 for selling, trading EGP 0.3 or 0.61 percent higher than Sunday’s EGP 49.85 and EGP 49.99, respectively.
This follows repeated missile and drone attacks between Washington and Tehran, continued between the US and Iran, leading to the closure of the Strait of Hormuz until further notice after the latest hostilities.
The pound weakened by EGP 1.42, or 2.9 percent, since the renewal of the regional conflict last week, after the US launched several counterstrikes on Iran. It traded at EGP 48.88 on Tuesday, 7 July, before the escalations, making it the strongest recorded rate since the onset of the war on Iran.
Furthermore, the last time the currency traded similarly to Monday’s rate was around 27 days ago, at EGP 50.29, on 16 June, before trading below the EGP 50-per-dollar mark on that same week and for the second time since the outbreak of the regional conflict.
It’s worth noting that the pound has now depreciated by about EGP 2.3, or 4.8 percent, from its pre-conflict level of EGP 47.99 against the US dollar.
The closure of the strait has also escalated fears of global energy and goods shortages due to disrupted trade and shipping routes. Meanwhile, oil prices also surged over 4 percent on Monday to around $78.50 per barrel, raising concerns of higher inflationary pressures, which could force central banks to hike interest rates.
The dollar also strengthened against other major currencies; the US dollar rose by 0.1% on Monday against the Japanese Yen, trading at ¥161.92. While the euro weakened by 0.1 percent against the US dollar, trading at $1.14, the British pound also fell by 0.1 percent to $1.34.
The Australian dollar fell by 0.1 percent to $0.69, while the New Zealand dollar also weakened by 0.1 percent. to $0.57.
The dollar index, which shows the strengthening of the currency against other major currencies, rose by around 0.2 percent to 101.07, reaching its strongest level since 8 July.
Other currencies strengthen against the pound
The euro continued to strengthen against the Egyptian pound, trading at EGP 57.36 for buying and EGP 57.52 for selling on Monday, compared to EGP 56.90 and EGP 57.06, respectively, on Sunday. The euro is now trading about EGP 0.89 above 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 67.19 for buying and EGP 67.42 for selling, weakening from EGP 66.83 and EGP 67.04 on Sunday, respectively. The currency remains around EGP 2.44 above its pre-conflict level.
Gulf currencies also continued to strengthen against the Egyptian pound.
The Kuwaiti dinar traded at EGP 162.97 for buying and EGP 163.47 for selling on Monday, compared to EGP 161.97 and EGP 162.48 on Sunday, while the Bahraini dinar rose to EGP 133.42 on Monday from EGP 132.65 on Sunday.
The Omani rial rose to EGP 130.66 on Monday, from EGP 129.9 on Sunday, while the Jordanian dinar traded at EGP 71.04, compared to EGP 70.61 on Sunday.
According to CBE data, Gulf currencies have appreciated by between EGP 0.6 and EGP 6.34 against the Egyptian pound since 28 February.
Gold prices fall
The gold sovereign traded at EGP 46,760 on Monday, dropping by EGP 400 from EGP 47,160 on Sunday, according to gold trading platform iSagha.
Meanwhile, 24-karat gold also fell to EGP 6,680, a EGP 57.25 decrease from EGP 6,737.25 on Sunday.
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