The USD to QAR exchange rate has recently stabilized at around 3.6398, marking a 90-day low and remaining close to its three-month average. Analysts note that this stability, within a narrow range of 3.6398 to 3.6566, reflects a cautious market after the USD experienced a recovery from earlier volatility driven by geopolitical tensions and domestic economic indicators.
The US dollar has gained support in part due to positive US retail sales figures and market reassurance following President Trump's comments regarding Federal Reserve Chair Jerome Powell. This recovery highlights the USD's inherent strength as a safe-haven currency, which typically sees increased demand during economic uncertainties. Moreover, the Federal Reserve's interest rate policies remain pivotal, with higher rates generally attracting investors to USD assets, thereby appreciating its value.
Experts emphasize that inflation trends, employment data, and GDP growth will further dictate the dollar's movement in the coming weeks. Should the upcoming consumer sentiment index show an improvement, it may bolster the dollar’s momentum as the week's close approaches.
The Qatari Riyal (QAR), on the other hand, is also influenced by oil price fluctuations, given Qatar's extensive oil exports. Recent oil prices have shown volatility, currently at $69.28, which is 2.9% above its three-month average and has oscillated significantly between $60.14 and $78.85. The correlation between rising oil prices and an increase in USD demand could affect the QAR in the context of broader trends in energy markets.
Both the USD and QAR will be subject to shifts based on upcoming economic data and geopolitical developments, particularly as markets await insights into the Federal Reserve's future monetary policy and global economic stability.