Saudi rate rise boosts riyal ahead of US Fed decision

Saudi Arabia's decision last week to raise interest rates appears to be having the desired effect, according to economists.

The kingdom's monetary authority, known as SAMA, unexpectedly raised both its repurchase and reverse repurchase rates on Thursday in a move that may have anticipated a probable hike by the US Federal Reserve this Wednesday. The increase has since narrowed the difference between a key Saudi interbank rate for riyals and the equivalent London rate for dollars, making it less attractive for depositors to shift into US currency.

Bloomberg