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April 2, 2026 (see April 14 update below). Next updates: April 22 and May 4, 2026. Visit Search to look at past issues of World Currency Observer (brochure edition).
Exchange rate developments in March 2026 were largely dominated by the disruption of worldwide petroleum and shipping markets, attributed to closure of the Strait of Hormuz route for the export of oil and other shipments, after the February 28 start of the United States attack on Iran (and also the destruction of infrastructure in neighboring countries around the Persian Gulf and the Gulf of Oman), contributing to significant worldwide increases in petroleum prices in March (the oil price rises include both the Europe-centered Brent oil price, and a lesser rise in the United States-centered West Texas Intermediate oil price). The impact on foreign exchange markets around the world in March 2026 has been a decrease in the US$ value of nearly every currency around the world, i.e., a general rise in the value of the US dollar. The few exceptions to currency weakness against the US$ in March 2026 included: the Argentina peso (which has been going through extensive economic and financial reforms, which include stabilizing the value of the Argentina peso); the Kazakhstan tenge (which is, at a moment when world oil prices have shot up, an oil exporter with large oil and natural gas reserves, bordering China and Russia, and which is in a strategic geographic location with access to most Asia and Europe markets at a time of oil and gas disruptions); and also included the Colombia peso, the Costa Rica colón and the Madagascar ariary - more on these currencies later. The strength of the US dollar in March is attributed to what is generally referred to as the (complex) safe haven status of the United States dollar. It should be added that another of the world's safe haven currencies, the Swiss franc, fell by 4% in March against the US dollar, with the fall beginning immediately after the start of the United States attack. There was a similar fall in the Japanese yen (where thought is being given to raising interest rates throughout the rest of 2026). The Euro was down by 2.5% in March, and the China yuan was down by 0.75%. Also, a symptom of the flight to the US dollar in March has been the drop over the month in US$ market prices for gold (down by 12%) and silver (down by 19%).
The United States blockade of shipments encompassing Iran ports in and near the Strait of Hormuz, with a particular effect on oil and gas, went into effect earlier this week (there are also Iranian mines in the Strait which the United States is working to clear). There are many implications of the restrictions in supply beside higher world oil prices - as widely noted, among the expected impacts are a reduction in world fertilizer supply, particularly in Africa, with higher world food prices expected. Also, the US might not be paying enough attention to its fiscal position, particularly as it relates to tariff issues. Among the exchange rate-related events so far this month: there was a three-week period in late March-early April when the US$ price of US-based WTI oil exceeded the European Brent oil price, which was reversed this week. Currencies around the world have generally been getting stronger against the US$ in April 2026, with a temporary reversal around the first week of April, when the United States suggested it was going to bomb bridges and power plants in Iran, a threat which was quickly rescinded.
(World Currency Observer will next be updated on April 22 and May 4, 2026. Visit Search to look at past issues of World Currency Observer (brochure edition). For permission-to-quote enquiries, e-mail World Currency Observer at WCO@briargreen.com.)
