It was the fourth time Kuwait has changed its dinar rate this year, the first revaluation coming on May 20 when the Middle East’s fourth largest oil exporter dropped its peg to the US currency and adopted a basket of currencies. Simon Williams, an economist at HSBC in Dubai, said the depreciation just a day after letting the dinar appreciate against the dollar could be a sign that having boosted the value of the dinar to a target level, Kuwait’s currency basket regime has been brought into effect. Williams said that if the currency basket has been activated, there would now be small changes in the value of the dinar against the dollar on a regular basis to reflect changes in the relative values of the world’s major currencies. The dollar rose sharply on Wednesday, brushing off weak US homes sales data and posting its biggest daily gain in a year against a basket of major currencies as traders covered short positions after the dollar index hit a 15-year low. read more
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