EGP to USD 2025 Forecasts

02 JunThe USD to EGP exchange rate has recently experienced notable fluctuations, currently positioned at 90-day lows near 49.52. This marks a 2.1% decline from its three-month average of 50.57, with movements confined within a relatively stable 4.3% range between 49.52 and 51.67. Analysts suggest that the depreciation of the Egyptian pound against the strengthening US dollar could continue, driven by a mix of domestic and global economic factors.

In recent updates, the US dollar's strength has been partly attributed to a risk-averse market environment, where investors flock to the safe-haven currency amid increasing geopolitical tensions. The anticipation surrounding the Federal Open Market Committee (FOMC) minutes has also bolstered bullish sentiment for the dollar, with forecasters noting a hawkish stance by the Federal Reserve regarding future interest rate policies.

Economists caution that the upcoming US GDP figures, which are expected to show a 0.3% contraction, could significantly impact the dollar's trajectory. If the actual data underperforms expectations, it may reignite recession fears, leading to volatility in the currency markets, including the USD/EGP pair.

Recent commentary around the US trade policies has generated speculation about the US dollar's long-term strength. Experts perceive that the imposition of tariffs by the US, particularly under President Trump's administration, could have implications on the dollar's valuation and its role as a global reserve currency. Analysts are closely monitoring how these trade dynamics may impact emerging markets like Egypt, particularly given the USD's significance in international transactions.

Overall, the future of the USD to EGP exchange rate will likely hinge on ongoing developments in US economic data, Federal Reserve actions, and broader geopolitical events that keep market participants vigilant about potential risks.