# Dollar drops as stocks surge, Fed keeps policy unchanged

> The dollar fell to a two-week low against a basket of currencies as stocks surged on expectations of a divided Congress and the Fed kept policy unchanged. The yuan rose to a two-plus-year high near 6.60 per dollar.

- Date: 2020-11-05 · published 2020-11-05T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/50331-dollar-drops-as-stocks-surge-fed-keeps-policy-unchanged
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker dollar and a stronger yuan can support US export demand for commodities priced in dollars, while stronger Chinese purchasing power may aid import demand.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-07-28 | [US dollar, stocks dip as Fed keeps taper timing close to chest](https://feedsoft.ai/events/45971-us-dollar-stocks-dip-as-fed-keeps-taper-timing-close-to-chest.md) | -0.4% | +0.4% |
| DXY | 2021-04-28 | [US Fed keeps rates unchanged as Powell says ‘not time for taper talk’; Dollar falls](https://feedsoft.ai/events/47794-us-fed-keeps-rates-unchanged-as-powell-says-not-time-for-taper-talk-dollar-falls.md) | +0.3% | -1.0% |
| DXY | 2019-06-20 | [Fed rate-cut sign boosts stocks, dollar drops](https://feedsoft.ai/events/7435-fed-rate-cut-sign-boosts-stocks-dollar-drops.md) | -1.1% | -0.8% |
| DXY | 2017-08-25 | [Stocks rise, U.S. dollar eases as Yellen omits policy \| Reuters](https://feedsoft.ai/events/69365-stocks-rise-u-s-dollar-eases-as-yellen-omits-policy-reuters.md) | -0.3% | -0.9% |
| DXY | 2017-12-14 | [Dollar nurses losses after Fed keeps outlook unchanged; ECB eyed \| Gold Eagle](https://feedsoft.ai/events/67654-dollar-nurses-losses-after-fed-keeps-outlook-unchanged-ecb-eyed-gold-eagle.md) | -0.4% | -2.1% |
| USDCNY | 2017-01-05 | [Yuan's surge knocks dollar as China moves on speculators](https://feedsoft.ai/events/73171-yuan-s-surge-knocks-dollar-as-china-moves-on-speculators.md) | +0.1% | -1.0% |
| USDCNY | 2022-11-14 | [U.S. dollar gains ground as investors focus on future Fed path](https://feedsoft.ai/events/8206-u-s-dollar-gains-ground-as-investors-focus-on-future-fed-path.md) | -0.9% | -2.9% |
| USDCNY | 2026-07-30 | [CNY USD: Yuan Rises to Highest Since Early 2023 as Dollar Drops After Fed - Bloomberg](https://feedsoft.ai/events/18568-cny-usd-yuan-rises-to-highest-since-early-2023-as-dollar-drops-after-fed.md) | -0.3% | -0.6% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/11/05/forex-markets-us-elections.html

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