The GBP to OMR exchange rate remains range-bound with a slight upward bias. Key drivers include the interest rate differential between the UK and Oman, where the Bank of England is expected to ease rates while the Central Bank of Oman maintains a stable rate influenced by oil prices. Current economic growth in the UK is projected to slow, with inflation on a declining trend, which can further pressure the pound.
The GBP to OMR has been trading at 0.5204, about 1.7% higher than its three-month average, within a stable range of 0.5006 to 0.5207. Near-term, the range is likely to hold steady unless significant economic shifts occur.
Upside risks could arise from stronger-than-expected UK economic data, which might support the pound. Conversely, a sharp decline in oil prices, significantly influencing the Omani Rial's strength, poses a downside risk to the GBP/OMR rate.