# In Asia, US dollar’s growing strength gives rise to stability concerns, suspected rate intervention | South China Morning Post

> The US Fed held its rate target at 5.25 to 5.50 percent and signaled it needs more evidence of inflation cooling before cutting. The US dollar index is up more than 4 percent this year, which has raised concerns among Asian central banks. Analysts expect China's central bank to let the yuan weaken gradually, and Japan is believed to have intervened twice to halt yen losses.

- Date: 2024-05-02 · published 2024-05-02T12:00:00.000Z
- Category: macro · region Asia · magnitude medium
- Page: https://feedsoft.ai/events/5875-in-asia-us-dollar-s-growing-strength-gives-rise-to-stability-concerns-suspected
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

A stronger dollar and higher-for-longer US rates tighten financial conditions for Asian importers of feed and can dampen their purchasing power for US commodities.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲
- USDJPY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-09-18 | [Dollar hits seven week high against the yen as Fed meeting on US interest rates eyed \| South China Morning Post](https://feedsoft.ai/events/69174-dollar-hits-seven-week-high-against-the-yen-as-fed-meeting-on-us-interest-rates.md) | +0.4% | +2.1% |
| DXY | 2020-04-20 | [Coronavirus boost to the US dollar shows China must do more to win global trust in the renminbi \| South China Morning Post](https://feedsoft.ai/events/53885-coronavirus-boost-to-the-us-dollar-shows-china-must-do-more-to-win-global-trust.md) | +1.1% | +0.6% |
| DXY | 2018-09-27 | [World’s two largest economies diverge as China leaves key interest rate unchanged in wake of US Fed cut \| South China Morning Post](https://feedsoft.ai/events/63271-world-s-two-largest-economies-diverge-as-china-leaves-key-interest-rate.md) | +0.4% | +1.6% |
| DXY | 2016-11-14 | [Chinese yuan tumbles to a seven-year low as dollar surges \| South China Morning Post](https://feedsoft.ai/events/7742-chinese-yuan-tumbles-to-a-seven-year-low-as-dollar-surges-south-china-morning.md) | +1.4% | +0.8% |
| DXY | 2024-03-28 | [The US Dollar Holds Strong as Interest Rate Cuts Are Expected to Be More Gradual in the United States - Desjardins](https://feedsoft.ai/events/31438-the-us-dollar-holds-strong-as-interest-rate-cuts-are-expected-to-be-more.md) | +0.0% | +1.6% |
| USDCNY | 2018-09-27 | [World’s two largest economies diverge as China leaves key interest rate unchanged in wake of US Fed cut \| South China Morning Post](https://feedsoft.ai/events/63271-world-s-two-largest-economies-diverge-as-china-leaves-key-interest-rate.md) | -0.1% | +1.0% |
| USDCNY | 2016-11-14 | [Chinese yuan tumbles to a seven-year low as dollar surges \| South China Morning Post](https://feedsoft.ai/events/7742-chinese-yuan-tumbles-to-a-seven-year-low-as-dollar-surges-south-china-morning.md) | +1.3% | +1.6% |
| USDCNY | 2021-11-02 | [Macroscope \| Why the wind behind the Chinese yuan’s strength is likely to die down in 2022 \| South China Morning Post](https://feedsoft.ai/events/44273-macroscope-why-the-wind-behind-the-chinese-yuan-s-strength-is-likely-to-die.md) | -0.1% | -0.5% |

## Sources

- scmp.com: https://www.scmp.com/economy/global-economy/article/3261220/asia-us-dollars-growing-strength-gives-rise-stability-concerns-suspected-rate-intervention

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