Dollar, Euro Surge Against Pound Amid Regional Tensions

The US dollar and euro rose against the Egyptian pound at the close of Wednesday's trading session. The dollar gained value at most banks across Egypt's banking sector, with a quote of EGP 50.65 for buying and EGP 50.75 for selling at National Bank of Egypt. Banque Misr also recorded the same price for the dollar.

The movement in exchange rates comes amidst regional tensions and uncertainty surrounding energy prices and capital flows. International institutions are assessing Egypt's external position, with Morgan Stanley outlining three potential scenarios for the Egyptian economy.

Under the first scenario, the Strait of Hormuz would reopen, Brent crude would fall to around $65 a barrel in the second half of 2026, and $60 in 2027. This would reduce Egypt's energy-import bill and narrow the current-account deficit to approximately $13 billion.

The International Monetary Fund has emphasized the importance of exchange-rate flexibility in helping Egypt absorb external shocks and fluctuations in capital flows. The euro also recorded broad-based gains against the Egyptian pound, with a quote of EGP 58.61 for buying and EGP 59.09 for selling at National Bank of Egypt.