Saudi Arabia could gradually appreciate its riyal in the event the dollar slides further against major currencies, says a report.
Riyadh-based Jadwa Investment said the kingdom is unlikely to drop its peg.
"Should the dollar contin
The Saudi riyal rose to a fresh 21-year high against the dollar on Tuesday on continued speculation that Riyadh will soon revalue its currency.
The Saudi central bank told Reuters last week it will not follow the US Federal Reserve's deci
Saudi Arabia's riyal surged to a 21-year high against the dollar on Thursday as speculation the kingdom may ditch the currency's peg to the dollar fuelled a frenzy of riyal buying.
This pushed the riyal to its highest level since December
Saudi Arabia will ride out the latest spell of dollar weakness and maintain the riyal's exchange rate against the US currency at least until 2010, Jadwa Investment Company said in a research note.
"None of the arguments that have been put