Saudi riyal tumbles as Trump threatens to punish Riyadh

Saudi riyal tumbles as Trump threatens to punish Riyadh

Agency News

Riyadh, Oct 16: Saudi Arabia's riyal was quoted at 3.7514 to the U.S. dollar in the spot market early on Monday, its weakest rate since June 2017.

Saudi financial markets have come under pressure in the last few days as U.S. President Donald Trump has threatened to punish Riyadh, if found guilty, in journalist Khashoggi missing case, reported CNBC.

Trade in the forward currency market, used by banks to hedge investments, also suggested some institutions were protecting themselves against the risk of capital outflows or US sanctions on Riyadh over the journalist’s case.

Saudi Arabia has launched a war in Yemen, imposed an embargo on Qatar, and arrested dozens of top officials and businessmen in a corruption purge, detained women's rights activists and seen tensions with Canada and Germany rise.

These, as experts said, already showed that political developments in Saudi Arabia were becoming an increasingly important economic risk.UNI