# Dollar rises on risk aversion; euro revisits parity

> The dollar index briefly hit a 20-year high in European trading, and the euro traded near parity with the dollar. The move is attributed mainly to aggressive Federal Reserve rate hikes and relative US economic strength, with capital flows supporting the currency.

- Date: 2022-08-22 · published 2022-08-22T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/40217-dollar-rises-on-risk-aversion-euro-revisits-parity
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A stronger dollar lowers the local-currency cost of US imports but makes US feed grains and meals less competitive abroad, a mild bearish factor for US export-linked commodity prices.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-07-20 | [Dollar rises vs euro as traders eye ECB rate decision](https://feedsoft.ai/events/40712-dollar-rises-vs-euro-as-traders-eye-ecb-rate-decision.md) | +0.2% | -0.7% |
| DXY | 2023-03-15 | [Pound falls vs dollar, rises vs euro on bank woes](https://feedsoft.ai/events/10080-pound-falls-vs-dollar-rises-vs-euro-on-bank-woes.md) | -0.1% | -1.2% |
| DXY | 2022-07-19 | [Euro-dollar parity: beyond symbolism](https://feedsoft.ai/events/40715-euro-dollar-parity-beyond-symbolism.md) | -0.3% | -1.1% |
| DXY | 2019-01-24 | [Dollar rises vs euro as ECB's Draghi warns on downside risks](https://feedsoft.ai/events/61302-dollar-rises-vs-euro-as-ecb-s-draghi-warns-on-downside-risks.md) | -0.4% | -0.3% |
| DXY | 2022-07-12 | [Euro bounces from brink of parity with US dollar](https://feedsoft.ai/events/40714-euro-bounces-from-brink-of-parity-with-us-dollar.md) | -0.4% | -1.2% |
| USDCNY | 2021-09-20 | [Evergrande jitters pull risk currencies lower, dollar gains on safety bid](https://feedsoft.ai/events/45274-evergrande-jitters-pull-risk-currencies-lower-dollar-gains-on-safety-bid.md) | +0.0% | -0.6% |
| USDCNY | 2016-11-10 | [Dollar rises as Trump victory raises inflation expectations](https://feedsoft.ai/events/5470-dollar-rises-as-trump-victory-raises-inflation-expectations.md) | +1.3% | +1.9% |
| USDCNY | 2022-04-20 | [Ringgit down against US dollar for fourth session as weakening global sentiment prompts risk aversion \| Malay Mail](https://feedsoft.ai/events/42103-ringgit-down-against-us-dollar-for-fourth-session-as-weakening-global-sentiment.md) | +2.5% | +5.4% |

## Sources

- reuters.com: https://www.reuters.com/markets/us/dollar-hits-5-week-high-hawkish-fed-before-jackson-hole-2022-08-22/

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