In the past week, the debate in financial markets has been whether the Fed would give precedence to the mess in the US banking industry or continued inflationary pressures while deciding on interest rates in the policy meeting ending March 22. The outcome of the Fed meeting–considered one of the most crucial in recent times– will set the tone for the markets in the near term.
Dollar feeble as rate hike bets dwindle, Iran war worries grow
The U.S. dollar weakened against major currencies as traders scaled back tightening expectations. Soft economic data, including retail sales and job losses, influenced these shifts.
August 18, 2026