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Dubai: Kuwait unusually allowed the dinar to fall twice against the rallying dollar yesterday as the central bank decided not to move in lockstep with the greenback.
Under pressure to control inflation at record levels above 11 per cent, Kuwait has kept the dinar mostly unchanged against the dollar during the US currency's rally since July, which has allowed it to rise against non-dollar currencies.
As the dollar hit 11-month highs against major currencies yesterday, the central bank followed up Tuesday's adjustment, which was the first in two weeks, with two more moves that allowed the dinar to fall by 0.08 per cent in total.
It reduced the dinar's rate by 0.04 per cent at 1000 GMT and again by 0.04 per cent at 1210 GMT. The dinar would trade around a mid-point of 0.26750 per dollar, compared with 0.26730 on Tuesday, the central bank said after the second move.
The dinar is the only Gulf Arab currency that is not pegged to the dollar.
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