# Explainer: Why the US Fed’s  policy  move matters to India?

> The US Federal Reserve signaled on June 17 a potential interest rate rise by 2023, which hit global stocks and weakened the Indian rupee. The explainer outlines how US rate changes pull foreign investment toward the dollar and calls for Indian policy responses.

- Date: 2021-06-22 · published 2021-06-22T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/46887-explainer-why-the-us-fed-s-policy-move-matters-to-india
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A hawkish Fed lifts the dollar and tightens global financial conditions, which can pressure emerging-market currencies and raise import costs for feed-importing countries like India. The direct effect on grain prices is modest.

## Read by commodity

- DXY: bullish ▲
- USDINR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-07-13 | [Explainer: Why the euro's fall below parity versus dollar matters](https://feedsoft.ai/events/40708-explainer-why-the-euro-s-fall-below-parity-versus-dollar-matters.md) | -0.8% | -1.3% |
| DXY | 2022-12-08 | [Explainer: What happened to the 2022 global oil rally? \| Reuters](https://feedsoft.ai/events/38396-explainer-what-happened-to-the-2022-global-oil-rally-reuters.md) | -0.8% | -1.4% |
| DXY | 2024-05-01 | [Explainer: Why has the Japanese yen been so weak?](https://feedsoft.ai/events/30961-explainer-why-has-the-japanese-yen-been-so-weak.md) | -0.7% | -0.7% |
| DXY | 2021-06-18 | [Explaining the volatile stock and bond market moves this week following the Fed's update](https://feedsoft.ai/events/5932-explaining-the-volatile-stock-and-bond-market-moves-this-week-following-the-fed.md) | -0.2% | +0.4% |
| DXY | 2018-12-18 | [Fed’s policy decisions have a deep impact in emerging markets - The Globe and Mail](https://feedsoft.ai/events/61747-fed-s-policy-decisions-have-a-deep-impact-in-emerging-markets-the-globe-and-mail.md) | -0.2% | -1.8% |

## Sources

- livemint.com: https://www.livemint.com/news/india/why-should-the-fed-s-policy-move-concern-india-11624383118130.html

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