Shaimaa Hefzy

The agreement to de-escalate the war in Iran and the declaration of a two-week ceasefire truce supported the price of the Egyptian pound against the dollar, which had fallen to record lows due to geopolitical tensions that had lasted for about 6 weeks.

During Wednesday's trading, the dollar's price fell to about 53.2 Egyptian pounds for buying and 53.3 Egyptian pounds for selling, according to data from local banks, by 11 a.m. Wednesday time, after it had ended Tuesday's trading at about 54.7 Egyptian pounds for selling.

Egypt, which relies heavily on imports to meet its basic needs, is facing the repercussions of the war, which has caused oil prices to rise, the Strait of Hormuz to be closed, hot money to flee, and shipping traffic in the Suez Canal to be affected, putting pressure on the local currency and pushing the dollar to record levels.

The truce, announced in the early hours of Wednesday after a deadline set by US President Donald Trump to end the war or face widespread attacks against Iranian infrastructure, included the reopening of the strait through which a fifth of the world's oil passes.

(Prepared by: Shaimaa Hefzy, for contact: zawya.arabic@lseg.com)

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