05 December 2007
KUWAIT: Kuwait allowed the dinar to rise against the dollar for a second day yesterday after the US currency lost ground on global markets. The dinar will trade around a midpoint of 0.27420 per dollar compared with 0.27430 on Monday, the central bank said, allowing an appreciation of 0.04 percent. It allowed the dinar to gain on Sunday after three depreciations last week including two on Nov. 28.
The currency of the Middle East's fourth-largest oil exporter has risen 5.45 percent 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 says the dollar's decline on global markets is driving up inflation and making some imports more expensive. Kuwait pays for more than a third of its imports in euros.
Investors betting other Gulf Arab central banks would follow Kuwait's lead and drop their dollar pegs pushed the United Arab Emirates dirham to a 17-year high last week and the Saudi Arabian riyal to a 21-year peak. Gulf rulers wind up a summit in Doha on Tuesday, and markets are watching the meeting for signals on the direction of currency reform.
In late New York trade, the dollar was down 0.6 percent at 110.48 yen and has fallen more than 7 percent against the Japanese currency this year. The euro rose 0.2 percent to $1.4664 taking its 2007 gain against the dollar to more than 11 percent.
KUWAIT: Kuwait allowed the dinar to rise against the dollar for a second day yesterday after the US currency lost ground on global markets. The dinar will trade around a midpoint of 0.27420 per dollar compared with 0.27430 on Monday, the central bank said, allowing an appreciation of 0.04 percent. It allowed the dinar to gain on Sunday after three depreciations last week including two on Nov. 28.
The currency of the Middle East's fourth-largest oil exporter has risen 5.45 percent 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 says the dollar's decline on global markets is driving up inflation and making some imports more expensive. Kuwait pays for more than a third of its imports in euros.
Investors betting other Gulf Arab central banks would follow Kuwait's lead and drop their dollar pegs pushed the United Arab Emirates dirham to a 17-year high last week and the Saudi Arabian riyal to a 21-year peak. Gulf rulers wind up a summit in Doha on Tuesday, and markets are watching the meeting for signals on the direction of currency reform.
In late New York trade, the dollar was down 0.6 percent at 110.48 yen and has fallen more than 7 percent against the Japanese currency this year. The euro rose 0.2 percent to $1.4664 taking its 2007 gain against the dollar to more than 11 percent.
© Kuwait Times 2007
