The current market bias for the Qatari Riyal (QAR) against the US Dollar (USD) is range-bound.
Key drivers include:
- Recent cuts to the Qatar Central Bank's interest rates have aligned with expectations of future US rate cuts, potentially supporting the QAR's stability.
- Qatar's economy is set to grow due to a significant increase in liquefied natural gas production capacity, which could bolster demand for the QAR.
- Expectations of a weaker USD in the near future due to further Federal Reserve rate cuts may support the QAR.
The near-term trading range suggests the QAR to USD exchange rate will likely remain within its recent levels.
One upside risk could be stronger-than-expected economic growth in Qatar, which may increase QAR demand. Conversely, further global shifts away from the USD, particularly in ASEAN countries, could exert downward pressure on the QAR.