Saudi Riyal at Weakest Since June 2017 in Spot Market

Local Editor

Saudi Arabia’s currency fell to its lowest level in two years and its international bond prices slipped on Monday over fears that foreign investment inflows could shrink as Riyadh faces pressure over the disappearance of journalist Jamal Khashoggi.

The Saudi riyal was quoted at 3.7514 to the US dollar in the spot market early on Monday, its weakest rate since June 2017, Refinitiv data showed.

The central bank maintains a peg of 3.75 riyals to the dollar, and usually, the currency fluctuates in a range of about 3.7498-3.7503.

Saudi financial markets have come under pressure in the last few days as US President Donald Trump has threatened to punish Riyadh if it turns out that Saudi journalist Jamal Khashoggi, who has disappeared, was killed in the Saudi consulate in Istanbul.

Oil prices moved only slightly on Monday as analysts said they doubted Saudi Arabia, the world’s biggest exporter of crude, would risk international isolation and damage its own finances by cutting back exports at a time when it is pushing through reforms designed to create jobs and diversify its economy.

Source: news Agencies, Edited by website team