U.A.E. May Be Next to End Dollar Peg, Forwards Show

U.A.E. May Be Next to End Dollar Peg, Forwards Show
By Matthew Brown

June 5 (Bloomberg) -- The United Arab Emirates may be the next Middle Eastern country to stop pegging its exchange rate to the U.S. dollar, according to trading in currency forwards.

The second-largest Arab economy may follow Syria and Kuwait, which both said in the past two weeks that they would dump the dollar peg to curb rising import costs and inflation. Middle East currencies have been dragged lower by declines in the dollar, pushing up the cost of imports from Europe and Asia.