The Egyptian pound traded as low as 5.7141 to the dollar, its weakest since January 2007, as foreign investors buy dollars to repatriate funds, traders said.
"They are capitalizing on equity gains and protecting their profits," said a trader at an Egyptian bank.
The Egyptian stock exchange’s benchmark index has fallen off a five-month high reached earlier this month. A second trader says much of the demand is coming from foreign banks.
"There is a lot of demand for LCs (letters of credit)," said yet another currency trader.
The pound is also tracking the euro lower against the dollar, traders said.
