Wires

Saudi riyal falls in forwards market as oil plunges

DUBAI, March 9 (Reuters) - The Saudi riyal fell sharply against the U.S. dollar in the forwards market on Monday as oil prices plunged, Refinitiv data showed.

Oil prices were set for their biggest daily rout since the first Gulf War on Monday, losing more than a quarter of their value after Saudi Arabia slashed its official prices in a market where demand was already hit by the impact of the new coronavirus outbreak.

One-year dollar/riyal forwards, which are trades scheduled to take place 12 months from now, were at 85 points on Monday, up from Friday's close of 10 points. They hit as high as 182.5 points, topping a high of 181.3 at the end of 2018.

The Saudi riyal is pegged at 3.75 to the dollar in the spot market, so banks often use the forwards market to hedge against risks.

(Reporting by Yousef Saba and Davide Barbuscia; Editing by Alison Williams)