Recent forecasts indicate a cautious outlook for the USD to EGP exchange rate. The US dollar has seen pressure from various macroeconomic factors, including concerns regarding the Federal Reserve's independence and the potential for rapid interest rate cuts. Following the recent Senate approval of Stephen Miran to the Federal Reserve's board, analysts are anticipating an anticipated rate cut in the upcoming Federal Reserve meeting, which could further diminish the dollar's strength.
A mix of economic indicators is influencing the US dollar's performance. Significant market focus is currently on upcoming inflation data, with the Consumer Price Index (CPI) report expected to reflect a gradual increase. Concurrently, U.S.-China trade tensions continue to pose risks, which could indirectly affect the dollar's valuation as well.
On the other hand, the Egyptian pound is exhibiting signs of stability, primarily benefitting from a noted ease in inflation, which is projected to have slowed to 12.7% as of August 2025. This decline is credited to the Egyptian government's tight monetary policies and the positive effects of an $8 billion financial support deal with the IMF. Additionally, the Central Bank of Egypt is expected to announce a 100 basis point interest rate cut, which could bolster the pound's position against the dollar. However, economists have recently revised down growth forecasts for the Egyptian economy due to headwinds from global tariff tensions.
Currently, the USD to EGP exchange rate stands at EGP 48.09, which is 1.8% below its three-month average of EGP 48.95, with the recent trading range being between EGP 47.93 and EGP 50.91. This stability, combined with expectant economic conditions in Egypt, suggests that the Egyptian pound may maintain resilience against the dollar, particularly as domestic economic reforms take effect.
Market analysts recommend continued monitoring of these economic indicators as they can significantly influence exchange rate movements in the short-term.
