Kuwait's central bank Thursday raised the value of the dinar by 0.78 percent against the dollar after the US currency hit a new record low against the euro. According to AFP, the dollar, which closed Wednesday at 0.27120 dinars, is now worth 0.26910 dinars.
It was the second largest raise since the dinar was de-pegged from the dollar in May 2007. In July, the dinar increased by 1.75 percent against the dollar.
Last May, Kuwait became the first Gulf state to peg its dinar to a basket of currencies after more than four years of linking it to the dollar, in a bid to cut inflation. Since then, the dinar has gained almost 7 percent against the dollar and is trading at a 20-year high.
© 2008 Mena Report (www.menareport.com)
