Egypt pound slips to weakest in almost eight years

Egypt's currency weakened on Tuesday to its lowest against the U.S. dollar since 2004, and traders and analysts speculated the central bank may have resumed a policy of allowing a gradual depreciation.

The Egyptian pound was bid as low as 6.114 to the dollar on Tuesday compared to a close of 6.110 the day before.

After having barely moved for much of the year following Egypt's popular uprising, the pound edged weaker for three months starting in early June before stabilising at around 6.09-10 to the dollar.

The uprising that ousted Hosni Mubarak in February 2011 chased away tourists and investors, two of the country's primary sources of foreign currency. Since then the pound has weakened by less than 5 percent, and economists say it is still substantially overvalued.

The central bank since early 2011 has spent more than half its foreign reserves to support the currency.