SGD/QAR Outlook:
The SGD is currently trading above its 90-day average and is near its recent highs, suggesting a bullish outlook. This strong position is supported by Singapore's solid economic growth and ongoing monetary policy stability.
Key drivers:
• Rate gap: The Monetary Authority of Singapore has maintained a supportive monetary policy to boost the SGD, while Qatar's exchange rate remains stable due to its peg to the US dollar.
• Risk/commodities: Oil prices are at 90-day highs, which may bolster the Qatari economy but also adds volatility, impacting the QAR.
• Economic performance: Singapore's economy showed resilience with notable GDP growth, which supports the strength of the SGD against the QAR.
Range:
Expect the SGD/QAR to remain within the current range, potentially testing the higher end but showing signs of stability.
What could change it:
• Upside risk: An unexpected surge in Singapore's export demand could drive the SGD higher.
• Downside risk: A significant drop in oil prices could weaken QAR stability and pressure the SGD/QAR rate.