SGD/QAR Outlook:
The SGD/QAR exchange rate is likely to increase as it is currently 1.2% above its 90-day average and trading near its upper range. This rise is supported by robust oil prices, which help strengthen the QAR.
Key drivers:
• Rate gap: The Monetary Authority of Singapore is adopting a more accommodative policy, while Qatar maintains stability through its peg to the US dollar.
• Risk/commodities: Oil prices are currently at 90-day highs, supporting the QAR due to its connection with global energy markets.
• One macro factor: Singapore’s GDP growth of 4.3% in Q2 indicates economic resilience amidst trade tensions.
Range:
The SGD/QAR is likely to test the upper extremes of its recent trading range, moving within a stable band.
What could change it:
• Upside risk: A further increase in oil prices could enhance the QAR's value.
• Downside risk: A significant economic downturn in Singapore could weaken the SGD.