Egyptian pound hits record low of 56 against US dollar

The Egyptian pound has fallen to an all-time low of 56 against the dollar on Monday, while the main stock index dropped about 2 percent.

• The pound hit a record low of 56 per dollar on Monday, after crossing 55 on October 22.
• The dollar broke 56 pounds for the first time at two banks, rising 16 piasters on the day.
• The EGX 30 index fell about 2% in early trading, a day after the bourse suspended trading for 30 minutes when the EGX 100 dropped 10%.
• Central Bank Governor Hassan Abdallah said a flexible exchange rate is the "first line of defense" against external shocks and that unifying the rate matters more than its level.
• The dollar recorded a new record high for the third time that day, approaching 57 pounds and trading between 56.01 and 56.27 at five banks.
• The EGX30 index closed down 2.48 percent at 48,013 points, as the market lost about 76 billion pounds in capitalization.
• The depreciation was pressured by a partial exit of foreign investors from local treasury bills and higher financing costs for essential commodity and petroleum imports.
• The dollar rose about 3.8 pounds since last week, from 53.47/53.57 to 56.23/56.33 pounds.
• Foreign investors exited roughly $2.1 billion from local treasury bills, and interbank transactions rose 62% to $3.12 billion.
• Analysts said easing tensions could pull the dollar back to 49-50 pounds, while continued escalation could push it to 65-72.