Kuwait dinar rises as US dollar tumbles
Kuwait let the dinar rise on Sunday after the dollar slid on global markets, posting its worst weekly performance in more than a year, as data showed a nine per cent drop in sales of new US homes last month.
The dinar will trade around a mid point of 0.27300 per dollar, compared with 0.27380, the central bank said, allowing an appreciation of 0.29 per cent, its biggest daily gain since November 21.
The Kuwait currency, which also rose 0.26 per cent on Thursday, is at its highest level since May 1988.
In late New York trading on Friday, the dollar was down 0.7 per cent versus the euro as the US housing report heightened concerns about the economy and bolstered the case for more Federal Reserve interest rate cuts in 2008.
The US currency also slipped 0.95 per cent against the yen and 1.14 per cent against the Swiss franc.
The currency of Kuwait, the Middle East's fourth-largest oil exporter, has risen 5.91 per cent since May 19, a day before the central bank started tracking a basket of currencies. Kuwait has declined to give the composition of the basket.
Kuwait's central bank said the dollar's decline on global markets was driving up inflation and making some imports more expensive. Kuwait pays for more than a third of its imports in euros. (Reuters)
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