# Dollar hits two-year low, fourth month of losses on Fed inflation mandate

> The US dollar hit its lowest level in more than two years and posted a fourth straight monthly loss on Monday, falling about 1.24% in August. The move followed Fed Chair Powell's policy framework shift allowing inflation to run moderately above 2% and rates to stay low for longer. The euro rose to about $1.195.

- Date: 2020-08-31 · published 2020-08-31T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/51844-dollar-hits-two-year-low-fourth-month-of-losses-on-fed-inflation-mandate
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A weaker dollar tends to support dollar-denominated commodity prices and can lift US export competitiveness discussions for grains and oilseeds, while easier money supports risk assets and commodity buying interest.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-01-10 | [Dollar treads water near 7-month lows ahead of U.S. inflation data](https://feedsoft.ai/events/37697-dollar-treads-water-near-7-month-lows-ahead-of-u-s-inflation-data.md) | -0.8% | +0.2% |
| DXY | 2025-06-27 | [Dollar hovers near 3-1/2-year low with market focus on US rate cuts, euro area inflation](https://feedsoft.ai/events/24439-dollar-hovers-near-3-1-2-year-low-with-market-focus-on-us-rate-cuts-euro-area.md) | -0.3% | +0.3% |
| DXY | 2023-07-12 | [US dollar stumbles, drops to more than one-year low as inflation eases in June](https://feedsoft.ai/events/9977-us-dollar-stumbles-drops-to-more-than-one-year-low-as-inflation-eases-in-june.md) | -1.4% | +0.8% |
| DXY | 2023-11-20 | [Dollar stumbles to over two-month low as markets eye Fed cuts](https://feedsoft.ai/events/12032-dollar-stumbles-to-over-two-month-low-as-markets-eye-fed-cuts.md) | -0.6% | -0.8% |
| DXY | 2025-03-05 | [Euro hits four-month peak; US dollar languishes on tariff-driven fears](https://feedsoft.ai/events/5799-euro-hits-four-month-peak-us-dollar-languishes-on-tariff-driven-fears.md) | -1.5% | -1.2% |
| EURUSD | 2025-06-27 | [Dollar hovers near 3-1/2-year low with market focus on US rate cuts, euro area inflation](https://feedsoft.ai/events/24439-dollar-hovers-near-3-1-2-year-low-with-market-focus-on-us-rate-cuts-euro-area.md) | +0.3% | +0.1% |
| EURUSD | 2025-03-05 | [Euro hits four-month peak; US dollar languishes on tariff-driven fears](https://feedsoft.ai/events/5799-euro-hits-four-month-peak-us-dollar-languishes-on-tariff-driven-fears.md) | +3.7% | +2.5% |
| EURUSD | 2026-01-30 | [Why the US dollar hit a four-year low and could fall further](https://feedsoft.ai/events/21238-why-the-us-dollar-hit-a-four-year-low-and-could-fall-further.md) | -1.2% | -1.0% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/08/31/forex-markets-dollar-japanese-yen.html

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