US Federal Reserve rate hike impacts Egyptian Pound and gold prices

Global and local financial markets are reacting to the US Federal Reserve's decision to raise interest rates by 25 basis points, marking the first increase in three years. This move has strengthened the US Dollar, which rose above 52 Egyptian Pounds in Egypt, reaching approximately 52.14 for purchase and 52.28 for sale at the Central Bank of Egypt.

In Egypt, the Saudi Riyal has remained relatively stable against the Egyptian Pound, trading at around 13.86 for purchase and 13.90 for sale at the Central Bank. Meanwhile, gold prices in Egyptian markets have remained steady following the Fed's announcement. The highest gold purity (24k) was recorded at 7,274 EGP for purchase and 7,217 EGP for sale, while the average price for a gram of gold stood at 6,365 EGP.

Economic analysts suggest that the Federal Reserve's hawkish stance and the subsequent rise in US Treasury yields are putting pressure on emerging market currencies, including the Egyptian Pound. This shift may influence foreign investment flows into local debt instruments as investors re-evaluate risks and returns between US and emerging market assets.