SAUDI RIYAL DEPOSITS SURGE ON U.S. RATE RISE
Saudi riyal interbank deposit rates
surged across the board as banks tried to build long positions
in anticipation of a further rise in U.S. Interest rates,
dealers said.
    They said traders expected riyal deposits to follow the
recent strong rise in eurodollar rates sparked by fears of a
tighter U.S. Monetary policy to halt the dollar's slide.
    "There was a wave of panic buying early in the morning as
people tried to cover gaps and build long riyal positions," said
one dealer. As a result, riyal deposits were strongly bid and
traders scrambled for any available offers.
    One-way trade focused mainly on the fixed periods but short
dates also rose, dealers said. Spot-next and one-week deposits
climbed to 6-5/8, 1/8 pct from 6-3/8, six on Sunday.
    One-month deposits rose to 6-1/2, 3/8 pct from 6-1/4, six
and three-month deposits climbed to 6-3/4, 5/8 pct from 6-9/16,
7/16. Six-month deposits also firmed to 7-1/8, seven pct from
7-1/16, 6-7/8 on Sunday.
    The spot riyal was steady at 3.7500/03 to the dollar after
quotes of 3.7498/7503 yesterday.
 REUTER
