Dollar Weakens on CenBank Decisions

2026-03-20 01:41 By Jam Kaimo Samonte 1 min. read

The dollar index hovered near 99 on Friday after losing more than 1% in the previous session, as hawkish signals from other major central banks strengthened their currencies at the dollar’s expense.

The European Central Bank, Bank of Japan, and Bank of England all kept policy rates unchanged on Thursday but indicated a bias toward tighter monetary policy amid inflation pressures from rising oil prices.

The BOJ is expected to resume policy normalization soon, while markets now anticipate rate hikes from both the ECB and BOE this year.

Elsewhere, the Reserve Bank of Australia raised its cash rate for the second consecutive meeting on Tuesday, and the Reserve Bank of New Zealand may tighten policy sooner than previously expected.

The Federal Reserve also held rates steady on Wednesday, with Chair Jerome Powell stressing that officials need to see progress in reducing inflation before resuming rate cuts.

The dollar index is on track to lose about 1.2% this week.



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Dollar Weakens on CenBank Decisions
The dollar index hovered near 99 on Friday after losing more than 1% in the previous session, as hawkish signals from other major central banks strengthened their currencies at the dollar’s expense. The European Central Bank, Bank of Japan, and Bank of England all kept policy rates unchanged on Thursday but indicated a bias toward tighter monetary policy amid inflation pressures from rising oil prices. The BOJ is expected to resume policy normalization soon, while markets now anticipate rate hikes from both the ECB and BOE this year. Elsewhere, the Reserve Bank of Australia raised its cash rate for the second consecutive meeting on Tuesday, and the Reserve Bank of New Zealand may tighten policy sooner than previously expected. The Federal Reserve also held rates steady on Wednesday, with Chair Jerome Powell stressing that officials need to see progress in reducing inflation before resuming rate cuts. The dollar index is on track to lose about 1.2% this week.
2026-03-20
Dollar Firms Up on Hawkish Fed Outlook
The dollar index held above 100 on Thursday after rebounding sharply in the previous session, supported by an increasingly hawkish Federal Reserve outlook. The central bank left the fed funds rate unchanged, as expected, noting the uncertain economic impact of the Iran war while flagging elevated upside risks to inflation. The Fed indicated it will not cut rates until inflation shows signs of easing, though it still projects one rate reduction this year and another in 2027, consistent with its December outlook. Data on Wednesday showed US producer prices rose more than expected in February. Investors now await the latest weekly jobless claims for fresh insights on the labor market. Meanwhile, oil prices climbed further following attacks on energy infrastructure across the Middle East as the Iran conflict continues. President Donald Trump temporarily waived the Jones Act to reduce the cost of transporting oil, gas, and other commodities within the US.
2026-03-19
Dollar Index Strengthens, Fed and Oil Eyed
The dollar index topped 100 on Wednesday as traders assessed the Federal Reserve’s latest monetary policy decision. The central bank left the fed funds rate unchanged, as expected, and noted that the economic impact of the war with Iran remains uncertain, while also flagging elevated upside risks to inflation. However, it still projects one rate cut this year and another in 2027, in line with its December outlook. The timing of these cuts, however, remains unclear, with investors currently expecting a move in December or January. Meanwhile, traders continue to monitor developments in the war with Iran, as strikes persist and oil prices remain volatile, swinging between gains and losses. In an effort to stabilize oil markets, President Trump issued a waiver of the Jones Act, stating it “will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to US ports for sixty days”.
2026-03-18