The USD to QAR exchange rate currently bears a cautious outlook.
Key drivers influencing the market include:
- The Federal Reserve's anticipated rate cuts, which are expected to weaken the USD as monetary easing begins. Recent forecasts suggest three additional rate cuts could occur by mid-2026.
- Qatar's recent reduction in interest rates by the Qatar Central Bank aligns with the Fed's moves, promoting stability in the QAR.
- Strong growth projections in Qatar's liquefied natural gas production may support the QAR, with expected GDP growth rates of 5.6% for 2025 and 7.9% for 2027.
The near-term trading range for USD to QAR is likely to remain stable, reflecting current market conditions. Key factors that could shift this outlook include rising oil prices, which typically benefit the QAR due to Qatar's export dependency, and an unexpected enhancement in global economic sentiment that could bolster the USD against the QAR.