# Why the Fed cutting interest rates may weaken the U.S. dollar

> An explainer notes that rising US interest rates tend to strengthen the dollar while falling rates weaken it. The Fed expected one cut in 2024 and four in 2025 at the time of the June projections. Analysts expect the dollar to come under pressure next year, though some see its strength persisting.

- Date: 2024-07-10 · published 2024-07-10T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/29459-why-the-fed-cutting-interest-rates-may-weaken-the-u-s-dollar
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The general dollar outlook matters for dollar-priced grain and oilseed export competitiveness, but this is background analysis without a new shock. Price impact is limited.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-10-15 | [Fed's Bullard says boost to dollar from interest rate hikes may ease \| Reuters](https://feedsoft.ai/events/39330-fed-s-bullard-says-boost-to-dollar-from-interest-rate-hikes-may-ease-reuters.md) | -0.5% | -3.8% |
| DXY | 2026-01-30 | [US Dollar Weekly Forecast: The Fed is seen reducing rates twice in 2026](https://feedsoft.ai/events/21241-us-dollar-weekly-forecast-the-fed-is-seen-reducing-rates-twice-in-2026.md) | +0.9% | +0.3% |
| DXY | 2017-01-26 | [Are Interest Rates No Longer Driving the Dollar? - BBH — Octa](https://feedsoft.ai/events/73136-are-interest-rates-no-longer-driving-the-dollar-bbh-octa.md) | -0.5% | -1.1% |
| DXY | 2020-03-03 | [Canadian dollar weakens as investors bet on Bank of Canada matching Fed rate cut - The Globe and Mail](https://feedsoft.ai/events/54361-canadian-dollar-weakens-as-investors-bet-on-bank-of-canada-matching-fed-rate.md) | +0.3% | +5.5% |
| DXY | 2024-06-05 | [US dollar to weaken, but Fed rate cuts are required, say strategists:  Reuters poll](https://feedsoft.ai/events/29967-us-dollar-to-weaken-but-fed-rate-cuts-are-required-say-strategists-reuters-poll.md) | +1.1% | +0.9% |

## Sources

- cnbc.com: https://www.cnbc.com/2024/07/10/why-the-fed-cutting-interest-rates-may-weaken-the-us-dollar.html

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