The USD to QAR market shows a bearish bias primarily due to anticipated U.S. Federal Reserve rate cuts.
Key drivers include:
- The U.S. is expected to cut interest rates further, which may weaken the dollar relative to the QAR.
- Qatar's economic growth, driven by increasing liquefied natural gas production, supports the QAR.
- Global inflation trends, particularly long-term deflation, could create a favorable environment for the QAR.
Expect the exchange rate to trade within a steady range, reflecting recent stability and near 3.6437, alongside a 3-month average.
Upside risks for the QAR could arise from stronger-than-expected growth projections or increased commodity prices, while the potential downside might be due to shifts in U.S. monetary policy that favor the dollar, or significant declines in oil prices, which have recently been volatile.