CAIRO - The Egyptian pound strengthens for a seventh day as foreign investors continue to switch funds into Egyptian equity and fixed income, traders say. Several transactions worth $50 million each were made early in the session, one dealer says. The Egyptian pound is also being supported by demand from Gulf Arab tourists, who have been flocking to Egypt for summer vacations. The pound normally tracks the dlr/euro rate closely, but over the last two months diverged as the euro strengthened against the dollar. “The market is now returning to the pound-euro correlation,” says another trader who expects the pound to appreciate further over the next few weeks. “I think the next support level is at the 5.6500/6550 level.” The pound strengthens at mid-session to as high as 5.662 to the dollar, from 5.680 on Wednesday.
