The US dollar fell against the Egyptian pound last week, closing at LE50.49 for buying and LE50.63 for selling, down from LE50.6 and LE50.7, respectively, according to the Central Bank of Egypt (CBE).
The US currency has been stabilised at around LE50.5 since the beginning of the year in the local market.
Globally, most Asian currencies weakened yesterday, while the dollar firmed as traders bet on no US interest rate cuts in the near-term, while fears of higher tariffs and slower growth dented risk appetite.
The dollar recovered from its post-Fed losses as markets grew convinced that the central bank will keep rates higher for longer this year, even as it maintained its projections of 50 basis points of cuts in 2025.
In Asia, most risk-driven currencies weakened, while the Japanese yen also retreated despite a stronger-than-expected inflation reading for February. The Chinese yuan was flat as traders sought more cues on stimulus measures.
Dollar recoups post-Fed losses as rate cuts appear distant
The dollar index and dollar index futures rose 0.2% each in Asian trade, extending an overnight rebound.
Markets were seen pricing in fewer chances of interest rates falling in the near-term, especially as the Fed left rates unchanged this week. Jobless claims data also showed resilience in the labor market, which is one of the Fed’s considerations for rate cuts.
Traders largely looked past U.S. President Donald Trump’s repeated calls for the Fed to cut interest rates. Trump on Thursday said it “would be great” if the Fed cut rates soon.
The central bank signaled no such intent during its recent meeting, flagging heightened uncertainty over the economy, Trump’s tariffs, and the trajectory of inflation. The Fed also hiked its 2025 inflation forecast and trimmed its growth outlook.
The Japanese yen weakened on Friday even as stronger-than-expected consumer inflation data for February kept traders focused on more interest rate hikes by the Bank of Japan. Broader Asian currencies moved in a flat-to-low range amid a dearth of immediate cues. The Chinese yuan’s USD/CNY pair rose 0.1% amid continued focus on more stimulus measures from Beijing.
The Australian dollar’s AUD/USD pair fell 0.2%, extending losses from the prior session after softer-than-expected labor data drummed up bets on more rate cuts by the Reserve Bank.
The South Korean won’s USD/KRW pair rose 0.1%, with traders skittish before a widely awaited ruling on impeached President Yoon Suk Yeol.
