# Sterling hits year low vs dollar on Fed rate hike fears and UK political risks

> Sterling fell to its lowest level against the dollar so far this year, briefly reaching $1.3359, after the Federal Reserve signaled it would probably raise rates in March. UK political risk also weighed as police opened an investigation into lockdown breaches at Downing Street.

- Date: 2022-01-28 · published 2022-01-28T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/43376-sterling-hits-year-low-vs-dollar-on-fed-rate-hike-fears-and-uk-political-risks
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A stronger dollar on Fed hike expectations tends to pressure dollar-priced commodities and can shift export competitiveness for US feed ingredients; the effect on feed prices is indirect.

## Read by commodity

- DXY: bullish ▲
- GBPUSD: bearish ▼
- USDCAD: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-11-08 | [Canadian dollar hits eight-week low as U.S. Fed affirms rate hike policy - The Globe and Mail](https://feedsoft.ai/events/62276-canadian-dollar-hits-eight-week-low-as-u-s-fed-affirms-rate-hike-policy-the.md) | +1.0% | +1.2% |
| 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 | 2022-10-28 | [Gold down 1% as dollar, yields rise on Fed rate-hike bets](https://feedsoft.ai/events/39036-gold-down-1-as-dollar-yields-rise-on-fed-rate-hike-bets.md) | +1.2% | -2.4% |
| DXY | 2026-06-24 | [U.S. dollar rises to 13-month high on Fed rate hike views](https://feedsoft.ai/events/11992-u-s-dollar-rises-to-13-month-high-on-fed-rate-hike-views.md) | -0.1% | -0.4% |
| DXY | 2016-12-14 | [U.S. bond yields, dollar gain, stocks fall after Fed rate hike](https://feedsoft.ai/events/73367-u-s-bond-yields-dollar-gain-stocks-fall-after-fed-rate-hike.md) | +1.6% | +0.9% |

## Sources

- globalbankingandfinance.com: https://www.globalbankingandfinance.com/sterling-falls-below-1-34-on-fed-rate-plans-and-pms-troubles/

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