KUWAIT - Arabstoday
The exchange rate of the Kuwaiti dinar against the US dollar was unchanged Tuesday keeping to KD 0.275 per USD, but dropped to KD 0.394 against the euro, said the daily bulletin of the Central Bank of Kuwait. The bulletin also reported a gain to KD 0.451 against the sterling pound, an unchanged rate of KD 0.003 against the Japanese Yen, and a drop to KD 0.314 per Swiss Franc. Fears concerning European sovereign debt are again dominating the economic scene and dictating exchange rates of main currencies in international markets, particularly after recent speculation that Greece might opt out of the 17-state Euro system. Investors are focusing on assessment of how European decision makers deal with the sovereign debt crisis, particularly since Portugal joined in as the third state stumbling on sovereign debt payments and requiring and receiving monetary rescue packages. To face these challenges, European Union leaders agreed initially, in a confidential meeting on Friday, to bring down conditions imposed on Greece in exchange for the USD 110 billion loan extended in 2010. Experts predict an agreement to extend the payment period, or to bring down interest rate on the loan, in order to avert a euro crisis. Fears of Greece failing to pay up next year, when the rescue loan repayment is due, increased recently. The EU is meanwhile seeking to enable Greece to benefit from the recently created euro-zone emergency fund to meet the payment deadlines. As for other currencies, they were affected by euro-zone reports, amid absence of fresh economic data from other main economic regions.