Limited recovery for the pound and stock market after days of losses

The Egyptian pound recovered slightly against the US dollar on Tuesday after three consecutive sessions of declines pushed the dollar to a record high. The dollar fell 16 piastres from Monday’s close to just under 56.20 pounds.

The dollar topped 56 pounds for the first time on Monday, as analysts pointed to continued concerns over the regional fallout from the US–Iran war. Those concerns prompted heavy outflows from Egypt’s debt market.

Despite continuing relatively heavy outflows of short-term foreign investment, the pound managed a modest recovery on Tuesday. Foreign investors in Egypt’s secondary debt market ended the day as net sellers of Treasury bills worth 37.3 billion pounds (about $665 million) and bonds worth 1.8 billion pounds (about $33.5 million).

Central Bank Governor Hassan Abdalla said last week that the dollar’s rise above 55 pounds and exchange-rate fluctuations were normal under a flexible exchange-rate system. He made the remarks at the Egypt Forum 2026.

At the same time, Egypt’s benchmark stock index rebounded after three consecutive sessions of losses, closing up 3.49%, supported by buying from Egyptian and Arab investors. Foreign investors, meanwhile, ended the session as net sellers of shares worth 228.2 million pounds (about $4 million).

The dollar’s recent gains have also pushed up domestic prices. Traders told Al Manassa in a previous report that the stronger US currency had driven up prices for several food commodities and production inputs. 

Local steelmakers have also announced another increase in rebar prices for factory-gate deliveries, raising them by between 1,200 and 1,700 pounds per ton amid higher exchange-rate-related costs.