Kuwait lets dinar rise for third day
Kuwait City, December 5, 2007
Kuwait allowed the dinar to rise against the dollar for a third day to a new 19-year high on Wednesday after the US currency extended losses on global markets.
The dinar will trade around a mid point of 0.27390 per dollar compared with 0.27420 on Monday, the central bank said, allowing an appreciation of 0.11 percent. It allowed the dinar to gain on Sunday and Monday after three depreciations last week including two on November 28.
The currency of the Middle East's fourth-largest oil exporter has risen 5.56 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.
The dollar fell against the yen and the euro on Tuesday on speculation the Federal Reserve could cut interest rates next week to calm market concerns over the credit turmoil and tightening liquidity. - Reuters