# Far from debasement, dollar hits overdrive: Mike Dolan

> The euro/dollar pair slid to its lowest since July 2020 after US inflation data. The one-year interest rate gap in favour of dollars rose almost 20 basis points to 0.9% in three weeks. The column argues the dollar's strength reflects rate expectations rather than debasement.

- Date: 2021-11-12 · published 2021-11-12T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/11951-far-from-debasement-dollar-hits-overdrive-mike-dolan
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A widening dollar rate advantage supports the dollar index, which tends to pressure dollar-priced grain and meal prices and changes import economics for euro-based buyers.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2021-11-16 | 5 | -2.2% | -3.1 | Describes EUR/USD sliding after US inflation data as the one-year USD-EUR rate gap widened, explaining the rate-differential mechanism. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-04-27 | [Dollar hits five-year high, growth concerns dent euro](https://feedsoft.ai/events/7377-dollar-hits-five-year-high-growth-concerns-dent-euro.md) | -1.2% | +0.8% |
| EURUSD | 2024-04-12 | [Dollar jumps on central bank divergence, euro hits five-month low](https://feedsoft.ai/events/9970-dollar-jumps-on-central-bank-divergence-euro-hits-five-month-low.md) | -0.6% | +0.5% |
| EURUSD | 2021-12-01 | [Dollar steadies, risk currencies recover from omicron-driven drop](https://feedsoft.ai/events/43797-dollar-steadies-risk-currencies-recover-from-omicron-driven-drop.md) | -0.4% | +0.4% |
| EURUSD | 2024-11-13 | [Dollar hits one-year high on Trump trades](https://feedsoft.ai/events/7556-dollar-hits-one-year-high-on-trump-trades.md) | -0.2% | -0.8% |
| EURUSD | 2018-05-29 | [Euro hits 10-month nadir versus dollare](https://feedsoft.ai/events/65218-euro-hits-10-month-nadir-versus-dollare.md) | +0.3% | +0.2% |
| DXY | 2022-04-27 | [Dollar hits five-year high, growth concerns dent euro](https://feedsoft.ai/events/7377-dollar-hits-five-year-high-growth-concerns-dent-euro.md) | +0.6% | -0.3% |
| DXY | 2022-04-22 | [U.S. dollar hits more than 2-year high on aggressive Fed hike outlook](https://feedsoft.ai/events/4950-u-s-dollar-hits-more-than-2-year-high-on-aggressive-fed-hike-outlook.md) | +2.5% | +2.0% |
| DXY | 2023-05-19 | [Hawkish Fed bets drive dollar higher \| Convera](https://feedsoft.ai/events/36143-hawkish-fed-bets-drive-dollar-higher-convera.md) | +0.6% | -1.4% |

## Sources

- reuters.com: https://www.reuters.com/business/far-debasement-dollar-hits-overdrive-mike-dolan-2021-11-12/

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