The current exchange rate for SGD to QAR stands at 2.8182, reflecting stability with only a 0.7% dip from its three-month average of 2.8377. Analysts note that this exchange rate has traded within a narrow band of only 2.3%, ranging from 2.8044 to 2.8693 over this period, indicating a balanced demand and supply situation.
Recent developments influencing the Singapore Dollar (SGD) include the Monetary Authority of Singapore's (MAS) easing of monetary policy due to declining inflation and slowing economic growth. In January 2025, the MAS adjusted its exchange rate policy band to allow for a modest SGD appreciation. However, as trade tensions, especially with the U.S., continue to pose risks, growth forecasts have been downgraded significantly from 2.6% to a more conservative 1.7%. This cautious outlook from economists reflects concerns over Singapore’s export dependence and is likely to maintain pressure on the SGD.
In contrast, the Qatari Riyal (QAR) benefits from its longstanding peg to the U.S. dollar at 3.64 QAR per USD, which has provided stability amidst fluctuating global economic conditions. The Central Bank of Qatar's interest rate adjustments, aimed at stimulating the economy, alongside a notable decline in inflation to 0.24%, reinforce this stability. Experts point out that the QAT is likely to gain from the strength of the U.S. dollar, supported by geopolitical events and economic policies.
Additionally, movements in oil prices further influence the QAR, particularly as the price of crude oil has recently climbed to $70.13 per barrel, a notable increase of 2.9% from its three-month average and indicative of a volatile market with a 12% range. Given Qatar's oil revenue reliance, such trends can significantly impact future monetary strategies.
Overall, while the SGD faces headwinds due to trade challenges and subdued economic forecasts, the QAR appears entrenched in stability, benefiting from its dollar peg and favorable local economic conditions. Stakeholders involved in international transactions should monitor these developments closely to navigate the currency landscape effectively.
