Dubai

Gulf states including Saudi Arabia and the United Arab Emirates will be forced to revalue their currency pegs this year following the dollar’s declines and the Federal Reserve’s interest-rate cuts, Bear Stearns has said. Five Gulf nations lowered interest rates last week in step with the US to keep their links to the dollar even as inflation accelerates. When Saudi Arabia left rates unchanged after the Fed’s Sept. 18 reduction, the riyal rose to a 20-year high.