The Egyptian pound continued to drop against the US dollar today after intense selling of stocks by foreign investors on the first day of trading in nearly six weeks.
The exchange price of the US dollar rose to LE5.97, an increase of one piaster from its price on Tuesday.
Raouf Kedwani, a top official from the Export Development Bank of Egypt, said there is a strong relationship between the stock and currency exchange markets.
Kedwani said the selling of stocks by Egyptian and foreign investors has helped increase the value of the US dollar. However, he said he expects confidence in the Egyptian economy to be restored soon, describing the current circumstances as exceptional.
Mohamed al-Abyad, head of the Foreign Exchange Division of the Egyptian Federation of Industries, said the rise of the US dollar is normal following the resumption of stock market trading, because foreign investors are still monitoring the development of the local economy.
Al-Abyad said he expects the value of the dollar to continue to rise until it reaches LE6 because of stock selling by foreigners, but said he expects it to drop again as the stock market stabilizes.
