Most Gulf markets in red as Fed seen hiking rates – Reuters

Most Gulf markets in red as Fed seen hiking rates – Reuters

May 1 (Reuters) - Most stock markets in the Gulf ended lower on Monday, weighed down by expectations the Federal Reserve will increase interest rates, although the Qatari bourse bucked the trend to finish higher.

The Fed is predicted to raise rates by another 25 basis points this week. The U.S. central bank has raised its policy rate by 475 basis points since March last year from the near-zero level to the current 4.75%-5.00% range.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.