Professor Ali Gamal Abdelgawad: USD/SAR Analysis: US Dollar vs. Saudi Riyal

العملات

Professor Ali Gamal Abdelgawad: USD/SAR Analysis: US Dollar vs. Saudi Riyal

Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Investment and Finance

USD/SAR Analysis: US Dollar vs. Saudi Riyal

Current Rates:

Current Rate: 3.7529 SAR/USD

Daily Change: -0.0003 (-0.01%)

Today Range: 3.7526 – 3.7532 SAR

52-Week Range: 3.7490 – 3.7599 SAR

Historical Performance

The USD/SAR pair shows remarkable stability over the following time periods:

Daily: Slight decrease -0.01%

Weekly: Decrease -0.03%

Monthly: Increase +0.06%

3 Months: Increase +0.02%

6 Months: Increase +0.06%

Annually: Slight decrease -0.10%

5 Years: Slight increase +0.04%

This performance reflects the stability of the Saudi Riyal against the US Dollar, a result of the Riyal's long-standing peg to the Dollar. Technical Analysis

The daily chart shows a very narrow trading range between 3.7526 and 3.7532 riyals, indicating a perfect balance between supply and demand.

Support Level: 3.7490 – 3.7526 riyals

Resistance Level: 3.7532 – 3.7599 riyals

This narrow range reflects the absence of strong buying or selling pressure on the Saudi riyal and confirms the effectiveness of the dollar peg policy in maintaining currency stability.

Economic Factors

The Riyal's Fixed Peg to the Dollar: The traditional policy that Saudi Arabia has followed for years ensures exchange rate stability.

Foreign Currency Reserves and Oil Reserves: These provide significant support for the riyal against the dollar, as oil revenues contribute to maintaining monetary stability.

Saudi Economic Situation: Stable growth and low inflation bolster the riyal's strength.

Global Factors: The global movement of the dollar has a very limited impact on the riyal due to the fixed peg.

Future Outlook

Short- to medium-term outlook: The price is expected to remain within the range of 3.7526–3.7532 riyals, with only very minor fluctuations resulting from global or domestic economic policies.

Long-term outlook: The continued peg to the US dollar ensures the riyal's stability with very slight fluctuations, making the Saudi riyal one of the most stable currencies globally.