# Dollar strength nears end with small Fed rate hike, breaks 101 handle

> The US dollar index fell to about 100.9, its lowest since April 2022, after the Fed raised rates by 25 basis points and Powell said inflation was making progress. The yuan strengthened about 0.43% to 6.7115 per dollar, and the yen and won also firmed.

- Date: 2023-02-02 · published 2023-02-02T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/37555-dollar-strength-nears-end-with-small-fed-rate-hike-breaks-101-handle
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker dollar lowers the dollar cost of commodities for importers using other currencies, and a firmer yuan supports Chinese purchasing power for feed ingredients.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-12-01 | [US dollar strength has ‘reached peak’, China’s central bank says, as Fed considers scaling back rate hikes \| South China Morning Post](https://feedsoft.ai/events/6579-us-dollar-strength-has-reached-peak-china-s-central-bank-says-as-fed-considers.md) | -1.7% | -1.8% |
| USDCNY | 2017-08-10 | [China’s yuan strengthens to 10-month high against US dollar](https://feedsoft.ai/events/69675-china-s-yuan-strengthens-to-10-month-high-against-us-dollar.md) | +0.3% | -2.8% |
| USDCNY | 2021-10-19 | [Dollar drops as rate-hike bets profilerate elsewhere, yuan hits 4-mth peak](https://feedsoft.ai/events/7483-dollar-drops-as-rate-hike-bets-profilerate-elsewhere-yuan-hits-4-mth-peak.md) | -0.7% | -0.6% |
| USDCNY | 2021-11-24 | [Asian FX resist dollar strength, Thai stocks hit over 2-year high \| Financial Post](https://feedsoft.ai/events/44313-asian-fx-resist-dollar-strength-thai-stocks-hit-over-2-year-high-financial-post.md) | -0.4% | -0.3% |
| USDCNY | 2018-08-24 | [PBOC Joins Forces With Powell to Hit the Brakes on Dollar Rally - Bloomberg](https://feedsoft.ai/events/10038-pboc-joins-forces-with-powell-to-hit-the-brakes-on-dollar-rally-bloomberg.md) | -0.5% | -0.3% |
| DXY | 2018-03-20 | [Even with a Fed rate hike, dollar can weaken further: Credit Suisse](https://feedsoft.ai/events/66188-even-with-a-fed-rate-hike-dollar-can-weaken-further-credit-suisse.md) | -0.9% | -1.2% |
| DXY | 2023-04-04 | [Dollar slumps after weak data, markets bet Fed nears end of hiking cycle](https://feedsoft.ai/events/36647-dollar-slumps-after-weak-data-markets-bet-fed-nears-end-of-hiking-cycle.md) | +0.4% | +0.1% |
| DXY | 2017-03-16 | [Why Did The US Dollar Fall Despite FED Hike? \| Exchange Rates UK](https://feedsoft.ai/events/72192-why-did-the-us-dollar-fall-despite-fed-hike-exchange-rates-uk.md) | -1.3% | -1.2% |

## Sources

- cnbc.com: https://www.cnbc.com/2023/02/02/-us-dollar-strength-nears-end.html

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