Arab Today, arab today kuwaiti dinar down against us dollar up before other major currencies
Last Updated : GMT 22:20:05
Arab Today, arab today
Arab Today, arab today

Kuwaiti dinar down against US dollar, up before other major currencies

Arab Today, arab today

Arab Today, arab today Kuwaiti dinar down against US dollar, up before other major currencies

Kuwaiti dinar
Kuwait - KUNA

The Kuwaiti dinar (KD), which is pegged to a basket of major currencies, has strengthened somewhat over the last few months, in large part due to the stronger dollar, according to a report by the National bank of Kuwait (NBK) on Wednesday.
The dinar has declined against the USD since June; however, it has moved up against all other major currencies, and as a result strengthened overall, the report explained.
The dinar's nominal effective exchange rate (NEER) has increased by around 2.6 percent since June.
The NEER, estimated by JP Morgan's KD index, is an index of major currencies weighted by their importance in Kuwaiti trade, it said.
Around 20 percent of Kuwait's imports come from the Eurozone, 10 percent from the US and 8 percent from Japan, the NBK report said. A large part of the rest comes from countries whose currencies are closely tied to the US dollar.
The KD has appreciated against most major currencies by around 5-11 percent since June, though it has slipped against the US dollar by 3.4 percent over the same period, falling from 3.55 USD/KWD to 3.43. At the same time, it has gained against the euro by 6.2 percent, the yen by 11 percent and the pound by 5.5 percent, the report added.
The NBK weekly report noted that the recent movements in exchange rates are largely a reflection of changes in monetary policy in major economies. The US dollar and foreign exchange markets have finally made large moves driven primarily by central banks' diverging policies.
The US Federal Reserve has finally ended its QE3 program (quantitative easing), thus paving the way to higher official interest rates for the US dollar sometime in second half of 2015. The Fed's updated policy stance reflects a now much healthier US economy, poised to grow 3 percent in the second half of this year, the report stated.
The US growth contrasts with the two other large economies that are struggling, the Eurozone and Japan. Very weak growth in the Eurozone and a (technical) recession in Japan by 3Q14, alongside deflationary pressures are forcing the central banks to renew their stimulative efforts.
A stronger KD should help keep inflation low. Inflation is running at around 3.2 percent in Kuwait and is expected to remain relatively modest in 2015, the report said.
The dinar's strength should help keep a lid on price growth. A 1 percent increase, if sustained over time, in the KD's value (index basis) could result in a 0.25-0.5 percentage point decline in the inflation rate, it explained.
In addition, the report0 expects the impact of a stronger dinar on the trade surplus is expected to be positive. Oil exports will rise as the dinar declines against the dollar. Meanwhile, imports will decline as a stronger KD results in a smaller import bill; while demand for imports is likely to rise as goods become cheaper and thus more attractive, this increase tends to be smaller than the drop in prices.
The stronger dollar will also have a small positive impact on government revenues. We estimate that a 1 percent decline in the USD/KWD rate adds around KD 250 million to state revenues, or 0.5 percent of GDP, the report concluded.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today kuwaiti dinar down against us dollar up before other major currencies Arab Today, arab today kuwaiti dinar down against us dollar up before other major currencies

 



Arab Today, arab today
Arab Today, arab today Accessories designer reveals her new collection

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection
Arab Today, arab today Laptop ban sparks ire

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today AT&T, Verizon join Google ad boycott

GMT 10:30 2017 Thursday ,23 March

AT&T, Verizon join Google ad boycott
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemeni official warns education is under threat

GMT 12:03 2017 Tuesday ,14 March

Yemeni official warns education is under threat
Arab Today, arab today Number of unwedded girls amounts to 2.5m

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Donia Abdel Aziz participates in "Game of Silence"

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"
Arab Today, arab today Mexico threatens to ditch US corn imports

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 07:39 2017 Monday ,20 March

Dalia Mustafa believes in the presence of ghosts

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection

GMT 16:41 2017 Monday ,20 March

Preserving the memory of glaciers

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 13:11 2017 Tuesday ,21 March

Web-based counseling lowers blood pressure

GMT 10:18 2017 Tuesday ,21 March

Kuwait's tourism industry to be worth

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 22:39 2017 Thursday ,09 March

Zuhair Murad presents his new collection "Resorts"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday