Forex Investment and Currency Trading

The whole GCC curve came crashing back to the right today, reverting to the curves started with at the beginning of this week. SAR was the biggest mover trading from 270/210 all the way to 180/130 before dollar sellers came in taking the 1 year to 240/200. AED 1 year started at 575/500 traded all the way to 380/330 before settling at 420/370. Both curves made moves in 3 days that we saw over a period of last few months. Again the 0.5-1% reval in the year seems to have come into play, with dollar sellers coming in at 0.5% reval built into the SAR 1 year and 1% built into the AED 1 year. QAR shifted slightly to the right, Kuwait moved to the right and came back again with mixed interest in the longer dated tenors. BHD and OMR curves remained static. Spots were quiet today other than SAR which traded from mid 3.7400 levels to 3.7489/95 before settling at 3.7475/95 at the end of day, Kuwait weakened off the back of dollar gains. Interestingly the 2 year tenors remained pretty much unaffected, though they did not move much with the initial surge to the left. Short dates out to 1 month remain tight with the 1 month tenors in SAR and AED moving to the right and trading at par or positive on the offer side towards the end of the day.
The last 3 days have seen incredible volatility in the market, leaving us pretty much back where we started, the 0.5-1% revaluation base probably still holds for now, and the longer dated tenors should probably start to be of interest to those looking at a possible currency regime change in the Middle East.