DUBAI, July 26 (Reuters) - The Central Bank of Kuwait on Wednesday increased its discount rate by 25 basis points to 4.25% from 4%, a statement said, after the Federal Reserve raised interest rates by a quarter of a percentage point.

The Kuwaiti dinar is pegged to a basket of currencies, including the US dollar.

(Reporting by Yomna Ehab and Alaa Swilam Editing by Chris Reese)