The euro fell to a two-year low in the Egyptian market this week in the wake of the Greek debt woes, which have paid their toll on the euro's foreign exchange versus many currencies worldwide. Taking the brunt here as well, the euro dipped to LE6.88 on Monday, but recovered some losses yesterday to LE6.93. "Trading on the euro has come to a halt. Euro holders are jittery to sell so they won't make any losses. People who want to buy prefer to wait and see until prices stabilise," Mohamed el-Abiad, the head of the foreign exchange department at the Federation of Egyptian Chambers of Commerce. "The dollar has seen a silver lining in the euro's fall, rising to LE5.62," el-Abiad said. "The reaction in the local market is a good sign, which is a proof of sound trading and stabilised foreign exchange policies," he added. The euro slipped versus the dollar yesterday, sticking near a four-year low as the eurozone debt crisis and worries that austerity steps may hurt regional growth dogged the European common currency. The euro slipped as low as $1.23, before pulling back to $1.24, little changed on the day. It hovered in range of $1.22 hit on Monday for the first time since April 2006, and analysts said it would remain under selling pressure. Market players fretted about the potential impact on any future IMF measures to help ease the eurozone's debt crisis, prompting some euro selling, although there was uncertainty about how much impact the Senate decision would have. Some traders said the euro may be poised to rise further over the course of the week, given the potential for further short-covering.
