# Why the US Fed's interest rate pause is a win for dollar bulls | The National

> A commentary argues that the Fed's September pause, with hawkish guidance hinting at rate cuts not before June 2024, is supporting the US dollar. The Dollar Index tested 2023 highs near 105.90 and two-year Treasury yields hit 5.2%, their highest since 2006.

- Date: 2023-09-08 · published 2023-09-08T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/34010-why-the-us-fed-s-interest-rate-pause-is-a-win-for-dollar-bulls-the-national
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A stronger dollar and elevated yields pressure dollar-priced commodities and can weaken importing currencies, affecting export competitiveness for US grains and meal. Feed buyers in import markets face higher local-currency costs.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼
- USDBRL: bullish ▲
- USDCAD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-09-30 | [Is the US dollar heading for a crash?  \| The National](https://feedsoft.ai/events/63245-is-the-us-dollar-heading-for-a-crash-the-national.md) | +0.7% | +1.8% |
| DXY | 2024-05-23 | [USD: Fed minutes boost the dollar \| IG International](https://feedsoft.ai/events/30147-usd-fed-minutes-boost-the-dollar-ig-international.md) | +0.3% | +2.1% |
| DXY | 2021-12-03 | [Dollar has the interest rate edge to rule for now: Reuters poll By Reuters](https://feedsoft.ai/events/43791-dollar-has-the-interest-rate-edge-to-rule-for-now-reuters-poll-by-reuters.md) | -0.2% | -0.5% |
| DXY | 2023-05-28 | [The Dollar Is Still King in Europe, and It’s Swaying Interest Rates - WSJ](https://feedsoft.ai/events/36156-the-dollar-is-still-king-in-europe-and-it-s-swaying-interest-rates-wsj.md) | -0.5% | -1.4% |
| DXY | 2020-09-17 | [Asian Shares Drop, Dollar Rises On Fed Interest Rate Promise](https://feedsoft.ai/events/51285-asian-shares-drop-dollar-rises-on-fed-interest-rate-promise.md) | +1.6% | +0.6% |
| USDBRL | 2020-03-19 | [Why the U.S. dollar’s relentless rally is causing pain for emerging markets - MarketWatch](https://feedsoft.ai/events/7018-why-the-u-s-dollar-s-relentless-rally-is-causing-pain-for-emerging-markets.md) | -1.1% | +2.8% |
| USDBRL | 2025-11-19 | [Dollar rises in the Brazilian market following international movement \| Brasil 247](https://feedsoft.ai/events/22163-dollar-rises-in-the-brazilian-market-following-international-movement-brasil-247.md) | +1.3% | +3.8% |
| USDBRL | 2024-05-31 | [Dollar surpasses R$ 5,25 as battle over Ptax rate overshadows international markets \| Brasil 247](https://feedsoft.ai/events/30474-dollar-surpasses-r-5-25-as-battle-over-ptax-rate-overshadows-international.md) | +1.0% | +6.8% |

## Sources

- reuters.com: https://www.reuters.com/markets/canada-gains-many-more-jobs-than-expected-august-unemployment-rate-unchanged-2023-09-08/
- thenationalnews.com: https://www.thenationalnews.com/business/money/2023/09/27/why-the-us-feds-interest-rate-pause-is-a-win-for-dollar-bulls/

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