USD/QAR Outlook:
The USD/QAR rate is likely to move sideways as it is trading near its recent average and within a stable range. Current geopolitical uncertainty supports the US dollar without a strong directional driver.
Key drivers:
• Rate gap: The US Federal Reserve's recent interest rate hikes have resulted in a strong USD, while the Qatari Riyal remains stable due to its peg to the dollar.
• Risk/commodities: Oil prices are currently volatile, trading just above their recent average, which generally supports the QAR but adds uncertainty to USD/QAR movements.
• One macro factor: Ongoing geopolitical tensions are prompting demand for safe-haven currencies like the USD, bolstering its strength in the market.
Range:
USD/QAR is likely to hold within its recent 3-month range, given the current state of stability.
What could change it:
• Upside risk: An unexpected geopolitical event could increase demand for the USD, pushing the rate higher.
• Downside risk: Signs of economic weakening in the US could lead to a decline in the USD's value, affecting the exchange rate negatively.
