DUBAI, June 7 The Qatari riyal fell to an
11-year low against the U.S. dollar in the spot market in late
trade on Wednesday due to concern about the long-term economic
impact on Qatar of its diplomatic rift with other Gulf Arab
The dollar was bid at 3.6517 riyals, its highest
level since July 2005, according to Thomson Reuters data. The
riyal is pegged at 3.64 to the dollar by the central bank, which
only allows small fluctuations around this level.
The riyal remained steady at a premium of 250 points to the
dollar in the one-year forwards market, which banks use
to hedge against future moves in the spot rate.
A Qatari central bank official told Reuters on Tuesday that
Qatar had huge foreign reserves which it could use to support
its currency if necessary.
(Reporting by Andrew Torchia; Editing by Hugh Lawson)