# Fed debt buying drives demand for risk at the dollar’s expense | 1330 & 101.5 WHBL

> The dollar slipped on June 16 after the Federal Reserve announced it would begin broad purchases of investment-grade US corporate bonds to secure company access to credit and market liquidity during the COVID-19 pandemic. The announcement eased second-wave virus fears, lifting risk-sensitive currencies such as the Australian and New Zealand dollars and pushing stocks higher.

- Date: 2020-06-16 · published 2020-06-16T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/52805-fed-debt-buying-drives-demand-for-risk-at-the-dollar-s-expense-1330-and-101-5
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker dollar and firmer risk appetite tend to support dollar-denominated commodity prices and can make US exports more competitive, while easier financial conditions support energy and feed demand expectations.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-06-09 | [Japanese traders gird for Fed to anchor yields, clip dollar’s wings \| 1330 & 101.5 WHBL](https://feedsoft.ai/events/52850-japanese-traders-gird-for-fed-to-anchor-yields-clip-dollar-s-wings-1330-and-101.md) | +1.1% | +0.8% |
| DXY | 2024-09-30 | [US Dollar Forecast: Fed’s easing weighs on the Dollar](https://feedsoft.ai/events/28507-us-dollar-forecast-fed-s-easing-weighs-on-the-dollar.md) | +0.9% | +3.1% |
| DXY | 2020-06-09 | [Sterling rises above $1.27; driven by dollar moves](https://feedsoft.ai/events/52871-sterling-rises-above-1-27-driven-by-dollar-moves.md) | +1.1% | +0.8% |
| DXY | 2020-03-02 | [US asset markets: What Fed cuts mean for US Treasuries and the dollar \| articles \| ING THINK](https://feedsoft.ai/events/7151-us-asset-markets-what-fed-cuts-mean-for-us-treasuries-and-the-dollar-articles.md) | -0.8% | +4.0% |
| DXY | 2020-07-29 | [US dollar breaking down, gold and the $A breaking up – what does it mean for investors? - Invest Blue](https://feedsoft.ai/events/52393-us-dollar-breaking-down-gold-and-the-a-breaking-up-what-does-it-mean-for.md) | +0.4% | -0.4% |

## Sources

- whbl.com: https://whbl.com/2020/06/15/fed-debt-buying-drives-demand-for-risk-at-the-dollars-expense/

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