# US dollar weakens as Fed measure weighs

> The US dollar fell modestly against major currencies on Tuesday as Federal Reserve measures to expand dollar liquidity for foreign central banks weighed on it. The dollar had earlier gained on quarter-end and fiscal year-end portfolio rebalancing after a steep March equity sell-off. For the quarter, the dollar was still the biggest gainer among major currencies.

- Date: 2020-03-31 · published 2020-03-31T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/10702-us-dollar-weakens-as-fed-measure-weighs
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Fed dollar-liquidity measures expand the supply of dollars available abroad, which eases the safe-haven dollar squeeze and tends to lift dollar-denominated commodity prices in relative terms. A weaker dollar generally supports US commodity export prices, including feed grains and meals.

## Read by commodity

- DXY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2020-03-31 | 5 | -2.4% | -3.3 | On 31 March Fed measures to expand dollar liquidity for foreign central banks weighed on the dollar, though quarter-end flows offset part of the decline. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-11-27 | [US dollar weakens as Fed rate cut view weighs](https://feedsoft.ai/events/33364-us-dollar-weakens-as-fed-rate-cut-view-weighs.md) | -0.2% | -1.0% |
| DXY | 2022-12-01 | [Dollar down as Fed minutes, U.S. data weighs](https://feedsoft.ai/events/38841-dollar-down-as-fed-minutes-u-s-data-weighs.md) | -0.6% | -1.5% |
| DXY | 2020-02-28 | [Baht gains more ground, as US dollar weakens](https://feedsoft.ai/events/54839-baht-gains-more-ground-as-us-dollar-weakens.md) | -0.5% | +4.3% |
| DXY | 2020-12-17 | [Ringgit to rebound as US dollar weakens](https://feedsoft.ai/events/49920-ringgit-to-rebound-as-us-dollar-weakens.md) | +0.2% | -0.2% |
| DXY | 2024-09-30 | [US Dollar Forecast: Fed’s easing weighs on the Dollar](https://feedsoft.ai/events/28507-us-dollar-forecast-fed-s-easing-weighs-on-the-dollar.md) | +0.9% | +3.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/03/31/forex-markets-coronavirus-in-focus.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.