The Saudi Arabian riyal fell to a record low against the dollar in the one-year forwards market on Thursday in response to a fresh slide in oil prices.

One-year dollar/riyal forwards climbed as high as 880 points in very volatile trade, exceeding their previous record of 850 points hit during a previous bout of speculation against the riyal in 1999, according to Thomson Reuters data.

A level of 880 points implies depreciation of the riyal of 2.3 percent over the next 12 months. The riyal is pegged in the spot market at 3.75 to the dollar. Some banks and funds use the forwards market to hedge against the risk that the peg might eventually be broken. -Reuters