SINGAPORE, March 13 Reuters The dollar fell sharply on Monday on heightened expectations the Federal Reserve will take a less aggressive monetary path as authorities stepped in to limit the fallout from the sudden collapse of Silicon Valley Bank.

The U.S. government announced several measures early during the Asian trading day, saying all SVB customers will have access to their deposits starting on Monday.

The authorities also said depositors of New York39;s Signature Bank, which was closed Sunday by the New York state financial regulator, would be made whole at no loss to the taxpayer.

The Fed announced it would make additional funding available through a new Bank Term Funding Program, which would offer loans up to one year to depository institutions, backed by Treasuries and other assets these institutions hold.

The market turmoil from the SVB collapse led investors to speculate the Fed will no longer raise interest rates by a supersized 50 basis points this month. Investor focus will now be on Tuesday39;s inflation data to gauge how hawkish the Fed is likely to be.

The dollar index , which measures the U.S. currency against six rivals, slipped 0.55 to near onemonth lows of 103.67 after Goldman Sachs said it no longer expects the Fed to deliver a rate hike at its March 22 meeting. The index was last at 103.85.

From the perspective of the FOMC, their concern is still inflation and inflation has not really decelerated, said Carol Kong, currency strategist at…