The SAR to GBP exchange rate is currently range-bound.
Key drivers include a monetary policy divergence, where the Bank of England (BoE) is expected to make cautious cuts to interest rates in response to slowing inflation and growth. Meanwhile, the Saudi Arabian Riyal (SAR) is pegged to the U.S. dollar, which provides stability but limits its flexibility against GBP fluctuations. Current UK employment figures and retail sales data could further influence the strength of the British pound.
In the near term, the exchange rate is likely to remain stable within a limited range, reflecting recent trading patterns.
An upside risk could emerge from stronger-than-anticipated retail sales or job growth in the UK, potentially strengthening the pound. Conversely, a downside risk includes deeper-than-expected cuts to BoE interest rates amid worsening fiscal concerns, which could weaken the pound against the riyal.