The US dollar stabilised versus the Egyptian pound on Friday at LE49.52for buying and LE49.66 for selling, according to data from the Central Bank of Egypt (CBE).
On a weekly basis, the US currency fell from LE49.62 and LE49.72 for buying and selling, respectively, according to CBE data.
Prime Minister Moustafa Madbouli reiterated Egypt’s commitment to a flexible exchange rate within a free market framework driven by supply and demand.
Globally, most Asian currencies edged higher as the dollar weakened on persistent expectations of a rate cut by the U.S. Federal Reserve in December, while the Japanese yen surged after hotter-than-expected inflation data from Tokyo.
Traders firmed up bets on a 25 basis points cut by the Fed in its December meeting, despite the U.S. data earlier this week showing the economy was still resilient, and inflation remained sticky.
The dollar index, and dollar index futures fell 0.3 per cent each in Asian trade.Investors turned to regional economic indicators for cues as U.S. markets were closed for Thanksgiving holiday on Thursday, resulting in thin volumes on last trading day of the month.
The Japanese yen hit its strongest level against the dollar in just over a month, with the USD/JPY pair falling nearly one per cent. The pair was set to decline nearly three per cent this week.
Most regional currencies edged higher yesterday, but were headed for monthly losses as they faced downward pressure from U.S. Republican Donald Trump’s electoral victory on November 5. Trump has proposed increased tariffs against China, reigniting fears of a global trade war that could have dire implications for Asian economies that are heavily reliant on trade.
The Chinese yuan’s onshore USD/CNY pair fell 0.2per cent, slightly drifting away from its four-month high. But, the pair was set for a monthly gain of 1.6per cent.
The Singapore dollar’s USD/SGD pair fell 0.2per cent, while the Thai baht’s USD/THB decline 0.5per cent. Both pairs were were on track to gain nearly 1.5per cent in November.
South Korea’s USD/KRW pair was largely unchanged, a day after the Bank of Korea cut benchmark interest rates for a second straight meeting in a surprise move. However, the won was set to lose nearly 1.6per cent against the dollar this month.
The Australian dollar’s AUD/USD pair rose 0.3per cent yesterday, but was heading for a 1% monthly loss, while the Indian rupee’s USD/INR pair was set to rise 0.5per cent in November.
Investors now see a 67per cent chance of a rate cut by Fed in December, up from 55per cent a week ago, according to CME Fed Watch Tool. This has resulted in some near-term weakness in the greenback.
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