The USD to QAR exchange rate is currently range-bound.
Several factors are influencing this trend. Firstly, the interest rate differential is narrowing, with the Qatar Central Bank recently cutting its rates by 30 basis points to align with anticipated Federal Reserve rate cuts in 2026. This makes the QAR relatively more attractive, especially as the Federal Reserve is expected to implement additional rate cuts, which could weaken the USD. Secondly, Qatar's economic growth is projected to be strong, particularly with its plans to significantly increase liquefied natural gas production, boosting its economic outlook. Lastly, softer inflation figures in the US have reinforced the USD selling bias, potentially keeping it under pressure.
In the near term, expect the USD/QAR trading range to remain stable, reflecting current numbers. Potential upside risks include unexpected improvements in US economic indicators, such as consumer sentiment, while downside risks could arise from global geopolitical tensions that impact oil prices, affecting QAR values.
