Since the QR is pegged to the US$, interest rates in Qatar must mirror US rates (otherwise there would be a risk-free arbitrage opportunity to borrow there and deposit here, or vice versa).
I'm no economist but it strikes me that with the Qatar economy booming, the budget in multiples of surplus, and inflation well above desired levels, there would be quite some pressure to increase the value of the QR against the US$.
Especially given the US economy is going through exactly the opposite cycle.
Since the QR is pegged to the US$, interest rates in Qatar must mirror US rates (otherwise there would be a risk-free arbitrage opportunity to borrow there and deposit here, or vice versa).
By the way that's not theory, it apparently actually is QCB policy: http://www.qcb.gov.qa/QCBInterestRates.asp
I'm no economist but it strikes me that with the Qatar economy booming, the budget in multiples of surplus, and inflation well above desired levels, there would be quite some pressure to increase the value of the QR against the US$.
Especially given the US economy is going through exactly the opposite cycle.