June 27, 2018 / 5:53 AM / a year ago

Bahrain dinar rebounds after Saudi, UAE, Kuwait promise support

DUBAI, June 27 (Reuters) - Bahrain’s dinar rebounded sharply against the U.S. dollar in the spot market in early trade on Wednesday after Saudi Arabia, the United Arab Emirates and Kuwait pledged they would support the country financially.

The dinar was at 0.37798. On Tuesday, it had dropped as low as 0.38261, a 17-year nadir, moving away from its official peg of 0.37608 as hedge funds dumped Bahraini bonds and sold the dinar in the forwards market because of concern about the country’s rising public debt.

Saudi Arabia, the UAE and Kuwait will soon announce an integrated program to support Bahrain’s economic reforms and its fiscal stability, the three Gulf states said in a joint statement late on Tuesday. They gave no details. (Reporting by Andrew Torchia Editing by Shri Navaratnam)

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