# USD: Fed has set up the dollar for further weakness - MUFG - Forex Crunch

> MUFG says the dollar has fallen back toward recent lows after the Fed adopted flexible average inflation targeting. The bank says the framework keeps real yields low and that further dollar weakness depends on whether the Fed loosens further or inflation picks up.

- Date: 2020-08-28 · published 2020-08-28T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/51792-usd-fed-has-set-up-the-dollar-for-further-weakness-mufg-forex-crunch
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A structurally weaker dollar supports dollar-priced commodities and can improve import affordability for feed buyers outside the US.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2025-05-19 | [Dollar set for more weakness as 'Brand USA' falls further out of favor \| Reuters](https://feedsoft.ai/events/24861-dollar-set-for-more-weakness-as-brand-usa-falls-further-out-of-favor-reuters.md) | -1.4% | -2.4% |
| 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 | 2019-12-31 | [USD: Fed's balance sheet expansion is creating a less favorable environment for the dollar - MUFG - Forex Crunch](https://feedsoft.ai/events/55756-usd-fed-s-balance-sheet-expansion-is-creating-a-less-favorable-environment-for.md) | +0.2% | +0.6% |
| DXY | 2020-10-09 | [USD/CNY catch-up may have more to go - MUFG - Forex Crunch](https://feedsoft.ai/events/5560-usd-cny-catch-up-may-have-more-to-go-mufg-forex-crunch.md) | -0.3% | -1.9% |
| DXY | 2020-12-04 | [Analysts predict further weakness for U.S. dollar next year](https://feedsoft.ai/events/49843-analysts-predict-further-weakness-for-u-s-dollar-next-year.md) | -0.0% | -1.0% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2020/08/28/usd-fed-has-set-up-the-dollar-for-further-weakness-mufg/

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