# Dollar takes a back seat as markets bet on Fed rate cuts - The HinduBusinessLine

> The dollar weakened on 2 March 2020 as markets priced in Federal Reserve rate cuts after Chairman Powell said the central bank would act as appropriate. Futures implied a 50 basis point cut, and the yuan rose to a near three-week high of 6.9703 per dollar.

- Date: 2020-03-02 · published 2020-03-02T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/6185-dollar-takes-a-back-seat-as-markets-bet-on-fed-rate-cuts-the-hindubusinessline
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Expected Fed easing weakens the dollar, which tends to support dollar-denominated commodity prices, while a firmer yuan can support Chinese feed import demand.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2020-03-02 | 1 | -0.7% | -4.4 | Dollar weakened on 2 March after Powell said the Fed would act as appropriate, with markets pricing a 50bp cut, a currency/rate-expectations mechanism. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-03-20 | [Dollar on defensive as market awaits Fed decision, euro edges up - The HinduBusinessLine](https://feedsoft.ai/events/60265-dollar-on-defensive-as-market-awaits-fed-decision-euro-edges-up-the.md) | +0.4% | +0.4% |
| DXY | 2020-02-27 | [Dollar retreats as coronavirus fallout raises expectations of rate cut - The HinduBusinessLine](https://feedsoft.ai/events/54780-dollar-retreats-as-coronavirus-fallout-raises-expectations-of-rate-cut-the.md) | -0.5% | +6.3% |
| DXY | 2017-07-31 | [Rupee gains on weak dollar - The HinduBusinessLine](https://feedsoft.ai/events/70270-rupee-gains-on-weak-dollar-the-hindubusinessline.md) | +0.3% | -0.5% |
| DXY | 2017-12-13 | [Gold jumps 1% as dollar slips on Fed rate outlook - The Business Times](https://feedsoft.ai/events/67390-gold-jumps-1-as-dollar-slips-on-fed-rate-outlook-the-business-times.md) | -0.4% | -1.8% |
| DXY | 2024-08-19 | [Sterling hits one-month high as Fed rate cut bets weigh on dollar \| Reuters](https://feedsoft.ai/events/29068-sterling-hits-one-month-high-as-fed-rate-cut-bets-weigh-on-dollar-reuters.md) | -0.8% | -0.7% |
| USDCNY | 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) | -0.8% | -1.1% |
| USDCNY | 2026-10-12 | [Yuan holds near 3-1/2-year high against dollar as rate bets ease - Markets - Business Recorder](https://feedsoft.ai/events/17258-yuan-holds-near-3-1-2-year-high-against-dollar-as-rate-bets-ease-markets.md) | -0.2% | — |
| USDCNY | 2017-09-21 | [China's yuan inches up as post-Fed US dollar rally fades - The Business Times](https://feedsoft.ai/events/69189-china-s-yuan-inches-up-as-post-fed-us-dollar-rally-fades-the-business-times.md) | +1.1% | +0.6% |

## Sources

- thehindubusinessline.com: https://www.thehindubusinessline.com/markets/forex/yen-euro-gain-on-dollar-as-markets-bet-fed-will-cut-rates-this-month/article30961154.ece

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