AED/QAR Outlook:
Slightly positive, but likely to move sideways, as the rate is near its 90-day average and lacks a clear direction.
Key drivers:
• Rate gap: The UAE Central Bank's monetary policies show alignment with the US Federal Reserve, potentially keeping the AED stable against the QAR, which is also pegged to the US dollar.
• Risk/commodities: Recent oil prices have risen above their average, benefiting the UAE’s oil-driven economy, which supports the AED's strength.
• Macro factor: Qatar's central bank has raised interest rates to stimulate the economy, which may provide some support for the QAR.
Range:
The AED/QAR rate is expected to hold within its recent range as it trades stable.
What could change it:
• Upside risk: A significant jump in global oil prices could boost the AED further.
• Downside risk: A moderation in the US dollar's value could negatively impact the QAR.