Kuwait's central bank allowed the dinar to depreciate against the dollar on Sunday for the third time in a week after the US currency recovered some losses against the yen. The dinar will trade around a mid point of 0.28180 per dollar compared with 0.28170 on Wednesday, the central bank said, a depreciation of 0.04 percent.
The currency of the Middle East's fourth-largest oil exporter has now risen 2.60 percent since May 19, a day before the central bank dropped its peg to the weakening dollar and adopted a basket of currencies. Kuwait has declined to give the composition of the basket.
In late New York trade on Friday, the dollar was up 0.3 percent at 118.48 yen, more than 1 yen above a low touched earlier in the session.
The euro was up 0.2 percent on the day against the dollar at $1.3697 , still well below a record high of around $1.3850 hit last month.
The central bank says the dollar's decline on global markets is driving up inflation and making some imports more expensive. The US currency hit a record low last month against the euro in which Kuwait pays for more than a third of its imports.
Central Bank Governor Sheikh Salem Abdul-Aziz al-Sabah said on July 29 the basket gave the bank flexibility to track moves on global foreign exchange markets, state news agency KUNA reported.
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