# Interest rates: US dollar sinks as traders position for rate cuts by the Federal Reserve

> The US dollar index slid 0.8% to 100.60, its weakest level since July 2023, after Powell said the time had come to cut rates. The greenback was down more than 2% in August as traders positioned for the Fed to start easing in September. The rally spread to currencies and commodities.

- Date: 2024-08-26 · published 2024-08-26T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/28691-interest-rates-us-dollar-sinks-as-traders-position-for-rate-cuts-by-the-federal
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A weaker dollar and expected rate cuts tend to lift dollar-priced commodities and currencies such as the Australian dollar, which tracks commodity demand.

## Read by commodity

- DXY: bearish ▼
- BRENT: bullish ▲
- AUDUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2019-07-31 | [Stocks sink after Fed dents hopes for multiple interest-rate cuts - Los Angeles Times](https://feedsoft.ai/events/58018-stocks-sink-after-fed-dents-hopes-for-multiple-interest-rate-cuts-los-angeles.md) | -7.6% | -7.3% |
| BRENT | 2024-01-29 | [Canadian Dollar hesitates with Canada GDP, US Fed rate call in the pipe](https://feedsoft.ai/events/32335-canadian-dollar-hesitates-with-canada-gdp-us-fed-rate-call-in-the-pipe.md) | -6.0% | -0.7% |
| BRENT | 2024-04-23 | [Crude oil prices today: WTI above $83 on hopes for interest rate cuts](https://feedsoft.ai/events/30928-crude-oil-prices-today-wti-above-83-on-hopes-for-interest-rate-cuts.md) | +1.5% | -5.0% |
| BRENT | 2026-09-29 | [Fed Rate Hike Bets and US Bond Rout Bolster the Dollar, Hurt Equities and Gold \| Investing.com](https://feedsoft.ai/events/17391-fed-rate-hike-bets-and-us-bond-rout-bolster-the-dollar-hurt-equities-and-gold.md) | +5.1% | +3.9% |
| BRENT | 2024-08-23 | [Oil climbs over 2% after Fed's Powell indicates US rate cuts \| Reuters](https://feedsoft.ai/events/28694-oil-climbs-over-2-after-fed-s-powell-indicates-us-rate-cuts-reuters.md) | +3.5% | -3.3% |
| DXY | 2023-06-30 | [Peru Dollar Exchange Rate: Decline in US Economy Sparks Possible Interest Rate Relaxation by the Federal Reserve – Archyde](https://feedsoft.ai/events/35768-peru-dollar-exchange-rate-decline-in-us-economy-sparks-possible-interest-rate.md) | -0.4% | -1.5% |
| DXY | 2019-06-02 | [The Australian dollar is grinding higher as expectations for rate cuts from the US Federal Reserve build](https://feedsoft.ai/events/58849-the-australian-dollar-is-grinding-higher-as-expectations-for-rate-cuts-from-the.md) | -0.8% | -1.8% |
| DXY | 2018-03-28 | [US dollar weighed down by trade and interest rate policies \| The National](https://feedsoft.ai/events/66189-us-dollar-weighed-down-by-trade-and-interest-rate-policies-the-national.md) | +0.2% | +1.4% |

## Sources

- au.headtopics.com: https://au.headtopics.com/news/interest-rates-us-dollar-sinks-as-traders-position-for-58007100
- afr.com: https://www.afr.com/markets/currencies/traders-pile-into-a-commodities-ahead-of-fed-cuts-20240826-p5k597

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