# USD: Energy shock supports strength as Fed stays cautious – MUFG

> MUFG notes the US dollar index is at its highest since May 2025 as Middle East conflict fuels concerns of a prolonged energy price shock. Fed Chair Powell signaled a preference to hold rates steady and look through the energy shock, pulling US yields lower.

- Date: 2026-03-31 · published 2026-03-31T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/20351-usd-energy-shock-supports-strength-as-fed-stays-cautious-mufg
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer dollar amid energy shock concerns raises the cost of dollar-priced commodities for importers and may temper global demand if the shock persists.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-06-29 | [US Dollar: Supported with elevated real yields – MUFG](https://feedsoft.ai/events/19014-us-dollar-supported-with-elevated-real-yields-mufg.md) | -0.0% | -0.1% |
| DXY | 2026-04-24 | [DXY: Fed repricing supports US currency – Deutsche Bank](https://feedsoft.ai/events/19922-dxy-fed-repricing-supports-us-currency-deutsche-bank.md) | -0.0% | +0.6% |
| DXY | 2024-09-16 | [US dollar strengthens ahead of expected Fed rate cut](https://feedsoft.ai/events/28508-us-dollar-strengthens-ahead-of-expected-fed-rate-cut.md) | -0.2% | +1.1% |
| DXY | 2024-12-19 | [Dollar strengthens as market digests Fed's hawkish cut](https://feedsoft.ai/events/27136-dollar-strengthens-as-market-digests-fed-s-hawkish-cut.md) | +0.5% | +1.4% |
| DXY | 2024-09-20 | [Dollar strengthens versus yen as BOJ strikes cautious stance on rate hikes \| Reuters](https://feedsoft.ai/events/28541-dollar-strengthens-versus-yen-as-boj-strikes-cautious-stance-on-rate-hikes.md) | -0.2% | +2.2% |

## Sources

- mitrade.com: https://www.mitrade.com/au/insights/news/live-news/article-6-1597145-20260331

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