# Dollar hits 5-mth low against euro as Fed seen closer to rate cuts

> The dollar slipped to a five-month low against the euro and a basket of currencies on Wednesday. The dollar index fell 0.48% to 100.98, its lowest since July 27, as traders expected the Federal Reserve could soon cut rates.

- Date: 2023-12-27 · published 2023-12-27T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/32899-dollar-hits-5-mth-low-against-euro-as-fed-seen-closer-to-rate-cuts
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of Fed easing weaken the dollar, which can lift dollar-denominated feed ingredient prices for importers' currencies to strengthen. The move is a routine currency reaction with limited direct effect on feed supply.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-02-29 | [US dollar dives to 7-week low against yen on Fed rate cut hint \| Malay Mail](https://feedsoft.ai/events/54819-us-dollar-dives-to-7-week-low-against-yen-on-fed-rate-cut-hint-malay-mail.md) | -0.8% | +4.0% |
| DXY | 2020-03-02 | [Yen, euro gain on dollar as Fed rate cut talks heat up \| Malay Mail](https://feedsoft.ai/events/6189-yen-euro-gain-on-dollar-as-fed-rate-cut-talks-heat-up-malay-mail.md) | -0.8% | +4.0% |
| DXY | 2023-11-20 | [Dollar stumbles to over two-month low as markets eye Fed cuts](https://feedsoft.ai/events/12032-dollar-stumbles-to-over-two-month-low-as-markets-eye-fed-cuts.md) | -0.6% | -0.8% |
| DXY | 2019-12-11 | [Dollar slips to 4-month low as Fed holds rates, nixes hike hopes](https://feedsoft.ai/events/55754-dollar-slips-to-4-month-low-as-fed-holds-rates-nixes-hike-hopes.md) | -0.6% | -1.0% |
| DXY | 2025-08-28 | [Pound Sterling rises against US Dollar as Fed Willians hints potential rate cuts](https://feedsoft.ai/events/23594-pound-sterling-rises-against-us-dollar-as-fed-willians-hints-potential-rate-cuts.md) | +0.0% | -0.2% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/dollar-under-pressure-rate-cut-wagers-thin-holiday-market-2023-12-27/

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