GulfBase Live Support
Leave a message and our representative will contact you soon
22/10/2014 06:58 AST
The Saudi riyal fell sharply against the US dollar in the forwards market on Tuesday because of a surge of demand for dollars in the spot foreign exchange market, where the Saudi riyal is pegged to the US currency, traders said.
One-year dollar/Saudi riyal forwards jumped to 90.0 points, their highest level since a peak of 91.50 points hit in March 2011.
The forwards closed Monday at 69.0 points and ended last Friday at 36.33 points. They are used by some international investors as a proxy for risk in the Gulf, and to hedge against market movements.
The surge of demand for dollars in the Saudi Arabian foreign exchange market may be linked to the recent plunge of global oil prices as well as a sharp fall of the Saudi stock market over the past two weeks, the traders said.
They said banks were not panicking, but some were buying forwards because the dollar demand had pushed the Saudi riyal’s spot rate unusually far beyond its peg of 3.75 against the dollar.
The spot rate, which has been creeping up in the last few weeks, was trading at 3.7518 on Tuesday morning; over the previous several years it had never risen above 3.7510.
Reuters
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
05/04/2018
Saudi Arabia's Public Investment Fund (PIF) has signed an agreement with Six Flags to develop and design an amusement park in Riyadh. Six Flags, the world’s leading international amusement park compa
Arab News
05/04/2018
In an exclusive interview with Arab News, Turki Mohammed Al-Shehri explains how an expanding renewables industry will boost employment as well as pave the way for a greener future.
A massiv
Arab News
05/04/2018
Dubai’s residential property market continued to soften in the first three months of this year, in line with analysts’ forecasts, with rental values recording a more pronounced fall than sales prices
The National
05/04/2018
Buoyed by a strong oil price of $70 per barrel, Saudi Arabia’s Tadawul shot up by over 6 per cent in March 2018, according to Kuwait Financial Centre’s (Markaz’s) recently released Monthly Markets Re
Times of Oman
05/04/2018
Qatar banks’ combined credit facilities to real estate sector rose by QR17bn to QR147.7bn in 2017. The banks’ credit to various sectors stood at QR911bn at the end of 2017, up from QR839bn recorded i
The Peninsula