Kuwait let the dinar rise to a new 19-year high versus the dollar on Wednesday after the greenback hit a record low against the euro.

The dinar will trade around a mid point of 0.27650 per dollar, from 0.27665 per dollar, the central bank said, allowing an appreciation of 0.05 percent.

The Kuwait currency has risen 0.61 percent since Oct. 24 to its highest since June 1988.

On Friday, futures reflected a 64 percent chance of a cut in the U.S. Federal Reserve's benchmark interest rate in December.

The Fed has cut rates by three-quarters of a percentage point since September, citing as a factor its concern that turbulence in the U.S. financial sector could spill over into the wider economy.

In late New York trading on Tuesday, the dollar was down 0.64 percent against the euro. The European currency has risen 10.29 percent against the dollar this year.

The currency of Kuwait, the Middle East's fourth-largest oil exporter, has risen 4.57 percent since May 19, a day before the central bank dropped its peg to the weakening dollar and adopted a basket of currencies. Kuwait has declined to give the composition of the basket.

Kuwait's central bank says the dollar's decline on global markets is driving up inflation and making some imports more expensive. Kuwait pays for more than a third of its imports in euros. - Reuters