Every month, ECA will bring you the key stories affecting exchange rates, helping global mobility professionals understand how currency shifts may affect assignment costs, allowances, and policy decisions. Read on for a breakdown of the major currency stories in March 2026, including the strongest and weakest performers of the month.
Damage to Qatar’s LNG capacity and the recent closure of the Strait of Hormuz has added fresh stress to global energy markets, spilling into foreign exchange. Major oil importers have seen the biggest impact and with increasing uncertainty in global markets, investors have sought the safe-haven of the US dollar, which strengthened through March.
By mid-March, both Japan and Korea voiced concerns on the volatility of financial markets, with both currencies depreciating sharply in March. The won hit its lowest value against the dollar in over a decade, and the yen slid to around 160 against the dollar, which may prompt intervention from Japan’s Central Bank.
The Egyptian pound and Venezuelan bolivar were the weakest performing currencies in March, both dropping 12% against the US dollar. The pound came under sharper pressure as the Iran war pushed up fuel and import costs, while the bolivar continued its steep month-on-month slide. Higher oil prices could offer Venezuela’s turbulent economy some short-term support in April.
Increased demand for oil saw both the Iranian rial and Kazakh tenge gain 4% against the US dollar, making them the best performing currencies in March. The rial was supported in part by the temporary lifting of U.S. restrictions on Iranian crude oil delivery.
March 2026 Currency Performance versus US dollar
| Major Currencies |
Value vs USD |
| GBP |
-1.8% |
| EUR |
-2.0% |
| AUD |
-2.8% |
| CNY |
-0.6% |
| JPY |
-1.6% |
| Strongest Performing Currencies |
|
| IRR |
+4.3% |
| KZT |
+4.2% |
| Weakest Performing Currencies |
|
| EGP |
-12.1% |
| VES |
-11.8% |
The two-week conditional ceasefire to the Iran war should see the reopening of the Strait of Hormuz, with immediate effects already seen in the decreasing price of oil. With continual higher energy prices driving inflation and tensions still high in the Gulf, foreign exchange markets will likely remain volatile, and governments may need to adapt their monetary policies.