The Egyptian pound strengthened for a seventh day as foreign investors continued to switch funds into Egyptian equity and fixed income, traders said.
Several transactions worth $50 million each were made early in the session, one dealer said. The Egyptian pound is also being supported by demand from Gulf Arab tourists, who have been flocking to Egypt for summer vacations.
The pound normally tracks the dollar/euro rate closely, but over the last two months diverged as the euro strengthened against the dollar.
"The market is now returning to the pound-euro correlation," said another trader who expects the pound to appreciate further over the next few weeks. "I think the next support level is at the 5.6500/6550 level."
The pound strengthened at mid-session to as high as 5.662 to the dollar, from 5.680 on Wednesday.
