# Loonie slides after Fed rate hike as investors retreat to safe haven of U.S. dollar | Advisor.ca

> The Canadian dollar slid to lows not seen in over two years on Thursday, falling below 74 US cents after the Fed raised rates by three-quarters of a point the previous day. Funds moved into the U.S. dollar on safe-haven demand, rising U.S. rates and weak equities. Fed officials signalled rates could reach about 4.4% by year-end.

- Date: 2022-09-22 · published 2022-09-22T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/39818-loonie-slides-after-fed-rate-hike-as-investors-retreat-to-safe-haven-of-u-s
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar and expectations of further Fed tightening weigh on dollar-priced grain and meal prices. The cycle of rate hikes is also a headwind for commodity demand.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-09-16 | [Canadian dollar hits six-week low as investors bet on additional Fed rate hikes \| Reuters](https://feedsoft.ai/events/17700-canadian-dollar-hits-six-week-low-as-investors-bet-on-additional-fed-rate-hikes.md) | +0.6% | +2.6% |
| DXY | 2023-09-27 | [Won plummets as investors flock to safe-haven dollar](https://feedsoft.ai/events/34360-won-plummets-as-investors-flock-to-safe-haven-dollar.md) | +1.1% | +1.1% |
| DXY | 2020-01-24 | [Dollar dips vs yen as investors reach for safe havens on virus scare](https://feedsoft.ai/events/55319-dollar-dips-vs-yen-as-investors-reach-for-safe-havens-on-virus-scare.md) | +0.2% | +1.3% |
| DXY | 2023-06-23 | [Stocks fall, dollar up as investors weigh more rate hikes \| Reuters](https://feedsoft.ai/events/35674-stocks-fall-dollar-up-as-investors-weigh-more-rate-hikes-reuters.md) | +0.6% | -0.7% |
| DXY | 2024-12-16 | [Dollar edges higher against major peers as investors eye Fed rate cut \| Reuters](https://feedsoft.ai/events/27178-dollar-edges-higher-against-major-peers-as-investors-eye-fed-rate-cut-reuters.md) | +0.5% | +1.6% |

## Sources

- advisor.ca: https://www.advisor.ca/economy/economic-indicators/loonie-slides-after-fed-rate-hike-as-investors-retreat-to-safe-haven-of-u-s-dollar/

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