Stock markets in the Gulf traded in a tight range on Tuesday as caution prevailed ahead of US inflation data and the Federal Reserve policy decision.

The Fed is widely expected to hold interest rates steady on Wednesday and keep them at the same level until at least July, later than earlier thought.

The US Consumer Price Index (CPI) report is due later on Tuesday.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by decisions of the Federal Reserve as most regional currencies are pegged to the US dollar.

Dubai’s benchmark stock index fell 0.1% in early trade, with most sectors trading in negative territory.

Emaar Properties declined 1.2% and the emirate’s largest lender, Emirates NBD, dropped 1.2%.

Most Gulf bourses track Asian shares lower

The Qatari benchmark stock index slipped 0.1%, with most sectors in negative territory, dragged down by a 0.9% drop in Qatar Commercial Bank and 0.4% decline in Qatar National Bank, the region’s largest lender.

Saudi Arabia’s benchmark stock index rose 0.2%, helped by gains in most sectors.

Elm Company jumped 2%, while Al Rajhi Bank, the world’s biggest Islamic lender, and Saudi National Bank, the Kingdom’s biggest bank, climbed 1.1% and 1.3%, respectively.

In Abu Dhabi, the benchmark stock index inched up, supported by a 1.6% rise in Alpha Dhabi and 3.3% gain in Emirates Driving Company.

However, First Abu Dhabi Bank, the UAE’s largest lender, lost 0.8%.