# Dollar jumps after Fed pulls interest rate hikes into 2023 | Reuters

> The dollar index jumped to a near six-week high after Federal Reserve projections showed a majority of officials expecting at least two rate hikes by 2023. Inflation projections rose and economic growth forecasts were lifted.

- Date: 2021-06-16 · published 2021-06-16T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/5929-dollar-jumps-after-fed-pulls-interest-rate-hikes-into-2023-reuters
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Expectations of earlier Fed tightening strengthen the dollar, which typically weighs on dollar-priced commodities and can reduce import demand from emerging markets.

## Read by commodity

- DXY: bullish ▲
- SOY: bearish ▼
- CORN: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2021-06-18 | 5 | +1.8% | 2.9 | The Fed's June 16 projections pulled rate hikes into 2023 and sent the dollar index to a near six-week high, starting the 5-day move. |
| DXY | 2021-06-17 | 1 | +1.3% | 5.6 | The Fed's June 16 hawkish dot plot sent the dollar index sharply higher, and the move carried into the June 17 window. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-08-02 | [Dollar jumps vs yen as Fed officials hint more rate hikes coming \| Reuters](https://feedsoft.ai/events/40270-dollar-jumps-vs-yen-as-fed-officials-hint-more-rate-hikes-coming-reuters.md) | +0.4% | +1.7% |
| DXY | 2022-07-14 | [Canadian dollar falls to a 20-month low after supersized interest rate hike](https://feedsoft.ai/events/40721-canadian-dollar-falls-to-a-20-month-low-after-supersized-interest-rate-hike.md) | -0.6% | -2.1% |
| DXY | 2022-01-27 | [Dollar jumps as markets brace for larger, faster rate hikes \| Reuters](https://feedsoft.ai/events/6268-dollar-jumps-as-markets-brace-for-larger-faster-rate-hikes-reuters.md) | +0.1% | +0.7% |
| DXY | 2022-12-04 | [Oil falls over 3% after data raises Fed interest rate worries \| Reuters](https://feedsoft.ai/events/38137-oil-falls-over-3-after-data-raises-fed-interest-rate-worries-reuters.md) | +0.3% | +0.1% |
| DXY | 2021-06-16 | [Gold slides over 1% after Fed projects rate hikes into 2023](https://feedsoft.ai/events/46487-gold-slides-over-1-after-fed-projects-rate-hikes-into-2023.md) | +1.4% | +1.4% |
| CORN | 2016-12-16 | [Dollar near 14-year highs after Fed tips more rate hikes](https://feedsoft.ai/events/6461-dollar-near-14-year-highs-after-fed-tips-more-rate-hikes.md) | -3.0% | -0.2% |
| CORN | 2016-12-14 | [U.S. bond yields, dollar gain, stocks fall after Fed rate hike](https://feedsoft.ai/events/73367-u-s-bond-yields-dollar-gain-stocks-fall-after-fed-rate-hike.md) | -2.5% | -0.4% |
| CORN | 2022-03-16 | [Fed finally moves against inflation with rate hike \| Reuters](https://feedsoft.ai/events/42200-fed-finally-moves-against-inflation-with-rate-hike-reuters.md) | +0.1% | +4.8% |

## Sources

- reuters.com: https://www.reuters.com/business/dollar-holds-below-one-month-high-currency-markets-wait-fed-2021-06-16/

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