At the start of 2026, currency markets were affected by the end of the conflict in Iran, leading to rising energy prices and inflation expectations. The Brazilian real has performed the best against the US dollar due to high interest rates and strong commodity exports. Other currencies like the Australian dollar and Norwegian krone have also benefited from commodity prices and rate hikes. The Hungarian forint saw a significant turnaround after a political shift. The Federal Reserve's inability to raise rates contrasts with other central banks, creating a divergence in monetary policy.