Two Gulf Arab borrowers have attracted heavy investor demand for international bond sales in the past two weeks, but higher yield premiums are prompting many other potential issuers in the region to seek alternative funding sources.
Gold edged up on Monday after robust US economic data lifted prices in the previous session, but gains could be capped by a firmer U.S. dollar, as well as lingering concerns about Greece's debt woes and a possible bailout for Spain.
The Saudi currency will not be affected by the depreciation of the US dollar, leading Turkish economist and strategist, Erda Gercek, said at a seminar hosted by Sidra Capital.
The currency exchange prices in the kingdom and
Gold lost its footing on Thursday after the US dollar jumped against other currencies, but euro zone debt jitters could limit losses as investors fretted about the lack of resolution to solve the crisis in Greece.
The Greek prime minister
Oman, which pegs its currency to the US dollar along with most Gulf Arab states, said on Wednesday a US debt default would destabilise Gulf reserves.
'We are discussing it within the central bank,' said a senior central bank o
The dollar fell to three-month lows on Monday on expectations that the threat to growth from high oil prices would keep US monetary policy loose, contrasting with a more hawkish outlook elsewhere.
The dollar index, which tracks the greenba
Oil prices fell by more than $2 to below $89 per barrel for the first time in 10 days as concerns about high US inventories and Chinese inflation outweighed positive US jobless data.
US crude futures fell by two per cent to $88.62 per barr
US Treasury Secretary Timothy Geithner has vowed that the United States would not devalue the dollar for export advantage, saying no country could weaken its currency to gain economic health.
"It is not going to happen in this country." Ge
The UAE central bank holds nearly all of its foreign exchange reserves, worth around $33 billion, in US dollars with no euros on its balance sheet, a senior central bank official told Reuters on Wednesday.
'Our foreign exchange reserve
Gold hit a record high above $1,192 on Thursday as the dollar stumbled further and sentiment remained solid on expectations of more central bank buying of bullion.
The dollar extended losses on Thursday, falling to its lowest in 14 years a