Egyptian pound slides further against dollar

Local currency slips again but analysts predict a slight upswing in the coming months as foreign investment recommences

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Egypt's pound continued its slide against the dollar Monday as concerns over funding for the country's revised budget and worries about the global economy fuelled safe haven demand for US currency.
The pound now stands at 5.9630 to the dollar, a further fall from Sunday's 5.9620 and its weakest level since 14 April.
"Despite Egypt's relative stability, people are buying dollars and getting out of the market, both Egyptians and foreigners,” said a forex trader in Cairo.
Analysts attributed Sunday's fall to the Egyptian government's rejection of US$4 billion in loans offered by the World Bank and IMF as budget support.
Worldwide economic turmoil has also encouraged investors to retrench in the dollar.
“All other currencies have problems right now too, Egypt is actually quite stable compared to a lot of other countries,” said the trader, referring to the Eurozone crisis.
“We will see the pound appreciate again. The central bank is intervening and there are foreign investors now interested in Egypt,” he added, predicting a return to around LE5.89 to the dollar within two months.
The central bank has drawn down official and unofficial reserves by more than $15 billion since Egypt's popular uprising erupted in January.