Recent developments in the Singapore Dollar (SGD) and Qatari Riyal (QAR) highlight several factors influencing their exchange rate forecast. As of September 9, 2025, the SGD has remained stable against the QAR, currently priced at approximately 2.8329, which is near its three-month average and within a narrow trading range of 2.8044 to 2.8693.
The Monetary Authority of Singapore (MAS) has maintained its monetary policy, citing a surprising economic growth rate of 1.4% in Q2 2025, which helped avoid a technical recession. The decision to keep the rate of appreciation policy unchanged reflects the easing of global trade tensions, although economists are divided on future policy moves, predicting potential easing to address a possible output gap in 2026. Additionally, a notable decline in core inflation to 0.6% provides MAS with flexibility in maintaining its current stance.
On the other hand, the QAR has been influenced by external economic conditions, particularly the anticipation of a U.S. Federal Reserve interest rate cut. This expectation has fostered positive sentiment in Gulf markets, benefiting Qatar's benchmark index. Furthermore, Qatar's international reserves have increased, rising by 3.5% in June 2025, indicating a solid economic foundation that may support the stability of the QAR.
Analysts have pointed out that fluctuations in oil prices, which affect the QAR due to its peg to the U.S. dollar, have contributed to market volatility. Currently, oil prices are at $66.99, about 2.9% below their three-month average, reflecting significant volatility in the range of $65.50 to $78.85.
Overall, the interplay between Singapore's stable economic growth and monetary stance and Qatar's robust international reserves, coupled with external expectations regarding U.S. interest rates, suggests that the SGD to QAR exchange rate could experience ongoing fluctuations influenced by these underlying economic trends. Currency analysts recommend monitoring these factors closely, as they could significantly impact future rates and international transaction costs.
