Good afternoon, friends. It’s another day with all eyes on the region, as the Israel-Iranian conflict continues to unfold — here in Egypt, everyone is closely following the impact of it all on markets, the exchange rate, and investor sentiment.

THE BIG STORY TODAY-

The EGP bounced back after a turbulent yesterday, as panic among foreign investors subsided, a source in the banking sector told EnterpriseAM. Markets were less reactive despite continued Israel-Iran escalations overnight, the source added.

Where the exchange rate stands currently: The USD was changing hands at EGP 50.21-50.31 at state-owned lenders at the end of trading today, down around EGP 0.45 from yesterday following a halt in exits and purchases from Arab and Egyptian institutions, which helped restore confidence among foreign investors. “We are still in a phase of uncertainty, but it seems the markets are becoming less affected by the repercussions — that is unless the escalation intensifies,” the source said.

Remember: The USD crossed the EGP 51 mark for the first time since April yesterday — the first day of trading since Israel and Iran started trading attacks. The USD was going for around EGP 50.66-50.69 at state-owned and private banks by the end of trading. The dip was the result of foreign investors exiting the local debt market in favor of safer havens, three sources in the banking sector told EnterpriseAM.

THE BIG STORY ABROAD-

Iran launched a fresh wave of missile attacks on Israel and Israel claims it has “full aerial control” above Tehran as the conflict enters its fourth day. As of right now, there is no clear path to de-escalation in sight and the Israeli side is warning of dire consequences ahead. (Reuters | Financial Times | France24)

Iran’s parliament is currently preparing legislation to formally withdraw from the Nuclear Non-Proliferation Treaty — which the country ratified in 1970, committing to forgo atomic weapons and cooperate with the UN’s atomic watchdog in exchange for pursuing civilian nuclear technology. (Reuters)

☀️ TOMORROW’S WEATHER- The capital is in for a sunny day tomorrow, with the mercury set to peak at 35°C throughout the day before cooling down to 23°C at night. The North Coast will be experiencing cooler weather, with the temperature expected to reach just 28°C during the day and 20°C at night, according to our favorite weather app.

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