Egypt’s currency drops to new low against the dollar

Egypt's central bank says the Egyptian pound has fallen to a new low against the dollar, its second such drop since Thursday.

The central bank set a cutoff rate of 7.73 Egyptian pounds per dollar in an auction that sold $39.6 million on Sunday, compared to the previous rate of 7.63.

Before Thursday's auction, the pound had held at 7.53 since February. The new rate could help boost much-needed foreign investment. Investors and economists see the currency as overvalued although the central bank has taken steps to alleviate the discrepancy, allowing the pound to slide somewhat before an investor summit last March.

This is the lowest level the Central Bank of Egypt (CBE) has allowed the local currency to reach since auctions started in December 2012, amid expectation of further devaluation in the coming days.

“The bank offered $40 million and sold 39.6 million at a cutoff price of 7.73 EGP per dollar,” the central bank said on its website Sunday.