# Lower-for-longer rates from the Fed point to a weaker-for-longer dollar

> Yahoo Finance reports that the dollar index fell to about 92 at the end of August, a two-year low, and analysts expect a weak dollar to persist. ING cites the Fed's shift to average inflation targeting as a significant bearish factor.

- Date: 2020-09-11 · published 2020-09-11T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/51287-lower-for-longer-rates-from-the-fed-point-to-a-weaker-for-longer-dollar
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A structurally weaker dollar tends to support US dollar-priced grain and feed commodity prices, and it can attract importer demand. The effect depends on how long the Fed keeps rates near zero.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-08-12 | [Stronger dollar down for the week as clues point to inflation peak \| Reuters](https://feedsoft.ai/events/40271-stronger-dollar-down-for-the-week-as-clues-point-to-inflation-peak-reuters.md) | +1.4% | +2.5% |
| DXY | 2020-06-10 | [Forex Today: Fed sent the dollar  further lower — Octa](https://feedsoft.ai/events/52525-forex-today-fed-sent-the-dollar-further-lower-octa.md) | +0.8% | +0.8% |
| DXY | 2021-02-11 | [Dollar slides near two-week lows as Fed pledges low rates](https://feedsoft.ai/events/48817-dollar-slides-near-two-week-lows-as-fed-pledges-low-rates.md) | +0.5% | +1.2% |
| DXY | 2023-07-10 | [US dollar drops to three-week low as Fed rate hikes nearly done](https://feedsoft.ai/events/9980-us-dollar-drops-to-three-week-low-as-fed-rate-hikes-nearly-done.md) | -1.7% | -0.2% |
| DXY | 2022-11-02 | [US dollar falls broadly after the Fed hints at a slower pace of rate hikes](https://feedsoft.ai/events/38845-us-dollar-falls-broadly-after-the-fed-hints-at-a-slower-pace-of-rate-hikes.md) | -1.4% | -4.2% |

## Sources

- finance.yahoo.com: https://finance.yahoo.com/news/lower-for-longer-rates-from-the-fed-point-to-weaker-for-longer-dollar-204429963.html

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