# The US dollar could be undervalued if commodities continue to rip higher

> Forex.com argues that the US dollar could be undervalued if commodities keep rising, because rising commodities are inflationary. That would reduce the central bank room to cut rates, and the Fed may not cut at all this year.

- Date: 2024-03-19 · published 2024-03-19T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/31106-the-us-dollar-could-be-undervalued-if-commodities-continue-to-rip-higher
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Persistent commodity inflation could delay rate cuts and keep the dollar firm, which would cap dollar-denominated commodity prices. The link to feed markets is indirect.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-02-14 | [Higher Rates, Rising Inflation, Stronger U.S. Dollar To Pressure Commodities? \| Investing.com](https://feedsoft.ai/events/42643-higher-rates-rising-inflation-stronger-u-s-dollar-to-pressure-commodities.md) | -0.0% | +2.0% |
| DXY | 2024-04-28 | [US dollar, yields look set to close the gap with commodities](https://feedsoft.ai/events/30630-us-dollar-yields-look-set-to-close-the-gap-with-commodities.md) | -0.7% | -1.1% |
| DXY | 2017-05-04 | [Commodities nerves grow after Fed boosts dollar - The HinduBusinessLine](https://feedsoft.ai/events/70922-commodities-nerves-grow-after-fed-boosts-dollar-the-hindubusinessline.md) | +0.4% | -1.2% |
| DXY | 2019-09-24 | [Rates In US Continue To Put Upwards Pressure On The US Dollar \| Exchange Rates UK](https://feedsoft.ai/events/57274-rates-in-us-continue-to-put-upwards-pressure-on-the-us-dollar-exchange-rates-uk.md) | +0.6% | -1.1% |
| DXY | 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) | +0.5% | +0.8% |

## Sources

- forex.com: https://www.forex.com/en/news-and-analysis/the-us-dollar-could-be-undervalued-if-commodities-continue-to-rip-higher/

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