The USD to QAR exchange rate appears range-bound in the near term.
The US dollar is pressured by expectations of more interest rate cuts from the Federal Reserve, particularly as inflation diminishes. This decline in inflation underpins a bearish outlook for the USD, while improving global growth and rising commodity prices may lead to increased volatility.
On the other hand, the Qatari riyal remains stable due to recent interest rate cuts from the Qatar Central Bank, which align with the Fed's actions. Additionally, Qatar's anticipated growth in liquefied natural gas production supports the QAR's value.
Expect the exchange rate to trade within a stable range, influenced by developments in both countries. Upside risks for the USD include unexpected positive economic data, while downside risks could come from sharper-than-expected rate cuts or geopolitical tensions affecting oil prices, which have recently been volatile.
