Foreign Exchange Market Update

March 23, 2026

U.S. Dollar Retreats as Fed Retains Rate Cut Projection

The U.S. dollar declined against major currencies during the week ended March 20, despite escalations in the Middle East war and fears of a protracted energy price shock. The Dollar's weakness came amid the Federal Reserve, which held rates steady and retained the rate cut projections made in December.

During the week ending on March 20, the U.S. dollar lost against the euro, the British pound, the Australian dollar, the Japanese yen, the Swedish krona, and the Swiss franc. The U.S. dollar, however, held its ground against the Canadian dollar. As a result, the Dollar Index, which measures the Dollar's strength against a basket of 6 currencies, dropped more than 0.70% weekly, recording its first weekly fall since the start of the war.

The Federal Reserve on Wednesday afternoon held rates steady at 3.50- 3.75%. Though one member preferred to lower the rates by a quarter percentage point. The committee acknowledged the solid pace of expansion in economic activity, the low job gains, the unemployment rate that has been little changed in recent months, as well as the somewhat elevated levels of inflation. The committee also noted the uncertainty surrounding the developments in the Middle East for the U.S. economy. During the past week, the Dollar Index traded between the weekly high of 100.48 recorded on Monday and the weekly low of 98.97 on Thursday. The index eventually closed the week's trading at 99.65, implying a decline of 0.71% from the level of 100.36 on March 13.

The EUR/USD pair jumped 1.36% during the week ended March 20, which witnessed the European Central Bank also keep interest rates steady. The common currency's surge against the U.S. dollar came amidst warnings from the central bank about the upside risks for inflation and downside risks for growth triggered by the Middle East war. From the weekly low of 1.1412 reached on Monday, the pair climbed to a high of 1.1616 on Thursday. The pair eventually closed the week at 1.1571, versus 1.1416 a week earlier.

The British pound rallied 0.88% against the U.S. dollar during the week ended March 20. The GBP/USD pair, which had closed at 1.3226 on March 13, closed trading for the week ended March 20 at 1.3342. The weekly trading range was wider, between a low of 1.3222 recorded on Monday and a high of 1.3468 on Thursday. The Bank of England had on Thursday voted to keep rates steady at 3.75% even as the conflict in the Middle East caused a sharp rise in global energy and commodity prices.

The Australian Dollar jumped 0.62% against the U.S. Dollar during the past week, amidst the Reserve Bank of Australia's widely expected quarter percentage rate hike on Tuesday. The AUD/USD pair rallied from the level of 0.6981 recorded on March 13 to close the week ended March 20 at 0.7024. During the week, the pair oscillated between a low of 0.6983 recorded on Monday and a high of 0.7125 recorded on Wednesday.

The U.S. Dollar declined against the Japanese Yen also during the week ended March 20, amidst the Bank of Japan leaving its key short-term rate unchanged at 0.75%, keeping borrowing costs at their highest since September 1995. The USD/JPY pair closed the week at 159.23 versus 159.73 a week earlier, registering a loss of 0.31%. During the week, the pair oscillated between the high of 159.91 recorded on Wednesday and the low of 157.51 recorded on Thursday.

With the spotlight on the escalation in the Middle East war as well as the threats and counter-threats of attacks on energy infrastructure, the six-currency Dollar Index touched a high of 100.15 on Monday. However, with President Trump signaling a pause on Iran strikes, the Dollar has retreated. The six-currency Dollar Index is currently trading at 99.44, implying an overnight decline of 0.21% from Friday's closing level of 99.65.

The EUR/USD pair is currently trading 0.26% higher at 1.1601 versus 1.1571 on Friday. The GBP/USD pair is currently trading near 1.3413 versus 1.3342 on Friday, implying a gain of 0.53%. The AUD/USD pair is currently trading 0.04% higher at 0.7027 versus 0.7024 on Friday. Amidst the dollar's retreat, the USD/JPY pair is now 0.40% lower at 158.60 as compared with the level of 159.23 recorded at the end of the previous week. 03/23/2026 - 09:01:00 (RTTNews)

Singapore Inflation Eases to 1.2% In February

Singapore's consumer price inflation moderated in February amid slower price growth in accommodation and private transport. The consumer price index (CPI) climbed 1.2% year-over-year in February, slower than January's increase of 1.4%, which was the highest inflation rate in thirteen months.

Meanwhile, core inflation accelerated to 1.4% in February from 1.0% in January. The rise was driven by higher inflation in services, food, retail, and other goods, partly reflecting seasonal effects associated with the Chinese New Year.

Inflation based on accommodation eased to 0.3% from 1.9% due to a smaller increase in the cost of housing maintenance and repairs. The annual price growth in private transportation slowed to 2.4% from 2.7%. Food inflation quickened to 1.6% from 1.2%, and services inflation rose to 2.0% from 1.5%. Prices for electricity continued to fall by 4.3%.03/23/2026 - 02:49:00 (RTTNews)