# COVID-19 and the US dollar

> The Federal Reserve cut the federal funds rate by 100 basis points to a 0.0% to 0.25% range on a Sunday in mid-March 2020, its second emergency cut in two weeks. The dollar nonetheless appreciated sharply because of funding stress in developed and emerging markets. The Fed also lowered the cost of its dollar swap facility with five other central banks.

- Date: 2020-03-17 · published 2020-03-17T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/54308-covid-19-and-the-us-dollar
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar during the funding squeeze lowers dollar-denominated commodity prices and raises the local-currency cost of imported feed ingredients, while the rate cut mainly signals easier financial conditions ahead.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-04-27 | [And The U.S. Dollar?](https://feedsoft.ai/events/65691-and-the-u-s-dollar.md) | +0.7% | +1.9% |
| DXY | 2022-09-28 | [Why is the US dollar so strong, and what does it mean?](https://feedsoft.ai/events/10320-why-is-the-us-dollar-so-strong-and-what-does-it-mean.md) | -1.8% | -1.5% |
| DXY | 2023-06-01 | [Why is the US dollar so strong again?](https://feedsoft.ai/events/35846-why-is-the-us-dollar-so-strong-again.md) | -0.9% | -1.2% |
| DXY | 2018-09-30 | [Is the US dollar heading for a crash?  \| The National](https://feedsoft.ai/events/63245-is-the-us-dollar-heading-for-a-crash-the-national.md) | +0.7% | +1.8% |
| DXY | 2022-07-01 | [Why has the dollar been so strong – and can it continue?](https://feedsoft.ai/events/40856-why-has-the-dollar-been-so-strong-and-can-it-continue.md) | +1.2% | +0.7% |

## Sources

- ubp.com: https://www.ubp.com/en/news-insights/newsroom/covid-19-and-the-us-dollar

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