Kuwait lets dinar fall; dollar slides vs euro, yen - Emirates24|7

Kuwait lets dinar fall; dollar slides vs euro, yen

 

Kuwait allowed the dinar to fall for a second trading day on Thursday even as the dollar slid on global markets as crude oil hit $100 a barrel and new economic data signalled that more interest rate cuts were on the way.


The dinar will trade around a mid-point of 0.27320 per dollar, compared with 0.27310 per dollar, the central bank said, allowing a depreciation of 0.04 per cent.

The dinar, which tracks a currency basket that the central bank has said is comprised mostly of dollars, has generally followed the greenback's moves on global markets.

In late New York trading on Wednesday, the US currency fell 0.96 per cent versus the euro and 1.95 percent against the yen.

Crude oil prices shot 4 per cent higher on tight energy stockpiles, exacerbating worries about the US economic slowdown and US Federal Reserve federal funds futures fully reflected a quarter-percentage point cut this month.

The Kuwaiti central bank could not be reached for comment on the rate change decision.

Kuwait, the Middle East's fourth-largest oil exporter, allowed the dinar to make its biggest daily gain since November 21 on Sunday as the dollar fell on global markets. The dinar currency fell 0.04 per cent on Wednesday.

The dinar has risen 5.83 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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