The USD to QAR exchange rate shows a bearish bias in the near term, influenced mainly by anticipated interest rate cuts from the Federal Reserve. These cuts, expected to occur in 2026, may weaken the USD.
Key drivers include the following:
- The Federal Reserve is likely to implement multiple rate cuts, influencing the USD's strength.
- Global economic growth improvements and rising commodity prices are anticipated to impact the value of the USD.
- Qatar's economic growth is bolstered by significant expansion in liquefied natural gas production, potentially supporting the QAR's stability.
In the next few months, the expected trading range for USD/QAR likely remains stable with modest fluctuations.
Potential upside risks include stronger-than-expected US economic data that could affect interest rate decisions. On the downside, a reduction in global demand for oil, where Qatari revenue is heavily reliant, could negatively impact the QAR's exchange value.