Mubasher: The Qatari riyal dropped against the US dollar in spot transactions and futures trading on Tuesday on the back of the diplomatic situation.
The Qatari currency fell to QAR 3.647 against the dollar in the spot market, registering its lowest level in a year, and nearing the Qatari central bank peg of QAR 3.64, according to Reuters.
In the one-year forwards market, the QAR traded as low as 275 points, against Monday's close of 250 points and around 180 points before the diplomatic tie-severing took place, Reuters reported.
Speaking to the news agency, a Qatari central bank official, who declined to be named under briefing regulations, stated that QAR’s sharp drop was due to speculation that Qatar had huge foreign exchange reserves which it could use to support its currency if the need arose.
