SAUDI RATES RISE AS BAHRAIN BANKS CAUGHT SHORT
Saudi riyal interest rates rose as
Bahrain-based banks scrambled to cover short positions, dealers
said.
    Several Bahrain banks had been lending in the fixed periods
and borrowing in the short dates, but today they found the
day-to-day money in short supply, dealers said.
    "Everybody's stuck in the spot-next," one trader said.
    Spot-next rose to as high as 6-1/4, six pct from 5-1/4,
five pct yesterday, and the borrowing interest spilled over
into the periods, with one month rising to around 6-3/16,
5-15/16 pct from 5-15/16, 7/8 pct yesterday.
    Three months edged up to around 6-9/16, 5/16 pct from
6-7/16, 1/4 pct, while six months was quoted a touch firmer by
some banks at seven, 6-3/4 pct.
    Commercial banks quoted the spot riyal at 3.7500/04 to the
dollar after 3.7507/09 yesterday.
 REUTER
