The Qatari Riyal has recently landed on a major low against the dollar as the country is facing diplomatic crisis. The riyal hit its major lows which were deemed as the weakest ever since 1998, according to various sources.
The central bank of Qatar has fastened the Riyal up to 3.64 to the dollar so even minor activities are expected to create fresh slumps.
In the previous week, S&P -the credit rating agency just reduced its abiding assessment of Qatar at an indentation from AA down to AA- which implies that the currency is still subject to possible downgrades in the coming sessions.
Qatar's close nationals, as well as Saudi Arabia, the United Arab Emirates, Bahrain and Egypt, has recently broke a diplomatic trade connections with the nation, blaming it for backing-up terrorist assemblages such as the Islamic State and Al-Qaeda in which Qatar has negated the accusations.
From the time when the declaration was announced, the stock market in Qatar has fallen at about 9% while it’s the Qatari riyal, has unfortunately declined to its massive 11-year low.
For the first time, Boris Johnson, UK foreign secretary, has recently interceded in the Gulf political crisis happening in Qatar, telling the country to do extra reductions on the financing of extremist assemblages and urging Saudi Arabia correspondingly and other Gulf States to alleviate their barricade on Qatar.
In London, Johnson phoned on Qatar on regards of their nationals’ apprehensions, successively after the meeting Qatar’s foreign minister, Sheikh Mohammed bin Abdulrahman al-Thani.
“Qatar is a partner of the UK in the fight against terrorism but they urgently need to do more to address support for extremist groups, building on the steps they have already taken to tackle funding to those groups.” Johnson specified.
The clash has the probability to upset venerable Gulf relations, other than reinforcing the situation of Iran, customarily perceived as an adversary by the whole Gulf state governances. Iran has proposed to provide food donations to Qatar, but up to now the proposition has been marked as unwanted and pointless.
No pronouncement had been made as to whether request Turkey to dispatch troops to Qatar or not, Thani told reports.
The Qatari Riyal’s pair up with the US Dollar severely plunged in its recent trades, with most of the bears conquering the trade candles massively. However, at the time of writing, the pair managed to trade higher – performing from an opening of 0.27233 and can potentially close at its current high of 0.2727.
Its RSI Level bounced back from the 20’s region to 32.33.
Meanwhile, the Coppock curve of the paired lingered below the negative range, continuing its down trend. It was last seen at -0.72 – a strong sell indication.
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