Saudi Arabia still feels the USD is the appropriate currency peg at this time and is confident in US handling of the current crisis.
Muhammed-al-Jasser, Governor of the Saudi Central Bank says “We have confidence that the US is throwing all the available weapons at the problem to stabilize the financial system” adding “We have not seen anything to make us worry about our assets in dollars at this time, but ofcourse this is a crisis in motion and we always have to be prudent and watch watch is happening.”
Nice little vote of confidence for the old greenback and indeed this morning the dollar is making ground. EUR/USD has sold off to 1.3440 in early European trading having opened up around 1.3480.
