Dinar drops on strong dollar

DINAR SLIDE: Kuwait let its currency fall as the greenback strengthened over Eid break. (Getty Images)

Kuwait let the dinar fall on Monday after the dollar climbed to six-week peaks against the yen and made gains versus the euro during the Islamic Eid Al-Adha holiday last week.

The dinar will trade around a mid point of 0.27450 per dollar, compared with 0.27420 per dollar on December 17, the last trading day before a public holiday, the central bank said.

By late New York trading on Friday, the dollar had gained 0.96% versus the yen, having surged to a one and a half-month peak earlier in the trading day.

On Thursday, the dollar rose to two-month highs against the euro and a basket of major currencies, bolstered by investors repatriating funds and covering of short positions in the US currency before year-end.

The dollar slipped 0.27% versus the European currency by late trading on Friday and was down 8.8% against the euro this year.

The currency of Kuwait, the Middle East's fourth-largest oil exporter, has risen 5.33% 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.

The 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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