EFG-Hermes revised its year-end forecast for the Egyptian pound to 5.65 against the dollar from its previous 5.80 pounds to reflect a stronger near-term euro outlook.
The Egyptian pound has inversely tracked euro/dollar movements over the last two years, and during the euro’s recent decline it strengthened.
"We do not expect to see a further weakening of the EGP beyond the 5.70 level," EFG-Hermes said.
It also revised its end-2011 estimate to 5.60 pounds to the dollar from 5.40 pounds. The pound closed at 5.692 to the dollar, down from 5.700 before the weekend.
