# Dollar jumps as markets brace for larger, faster rate hikes | Reuters

> The dollar rose as short-end US Treasury yields climbed, with the two-year yield up 7.9 basis points to 1.170%. The yuan weakened after data showed Chinese industrial profits growing at their slowest pace in more than 18 months.

- Date: 2022-01-27 · published 2022-01-27T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/6268-dollar-jumps-as-markets-brace-for-larger-faster-rate-hikes-reuters
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Expectations of faster US rate hikes strengthen the dollar, which tends to pressure dollar-priced commodities. Weaker Chinese profits also increase the case for policy support in China.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2022-01-27 | 1 | +0.8% | 3.0 | Dated 2022-01-27, it reports the dollar jumping as short-end Treasury yields rose on expectations of larger, faster Fed hikes, which directly explains the one-day broad dollar move. |
| USDCNY | 2022-01-27 | 1 | +0.7% | 5.3 | A stronger dollar on hawkish Fed rate-hike expectations and weak Chinese industrial profits on 2022-01-27 weakened the yuan, which would raise CNY per USD and fits the day's move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-06-17 | [Dollar jumps as Fed holds rates but projects one hike later this year \| Reuters](https://feedsoft.ai/events/11988-dollar-jumps-as-fed-holds-rates-but-projects-one-hike-later-this-year-reuters.md) | +1.8% | +0.9% |
| DXY | 2021-06-16 | [Dollar jumps after Fed pulls interest rate hikes into 2023 \| Reuters](https://feedsoft.ai/events/5929-dollar-jumps-after-fed-pulls-interest-rate-hikes-into-2023-reuters.md) | +1.4% | +1.4% |
| 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 | 2022-04-22 | [Wall Street dives, dollar jumps as rate hikes take spotlight \| Reuters](https://feedsoft.ai/events/7375-wall-street-dives-dollar-jumps-as-rate-hikes-take-spotlight-reuters.md) | +2.5% | +2.0% |
| DXY | 2018-06-13 | [Dollar mostly firmer as Fed sees more U.S. rate hikes \| Reuters](https://feedsoft.ai/events/64708-dollar-mostly-firmer-as-fed-sees-more-u-s-rate-hikes-reuters.md) | +1.3% | +0.6% |
| USDCNY | 2018-07-18 | [GLOBAL MARKETS-Dollar's advance puts squeeze on gold, commodities By Reuters](https://feedsoft.ai/events/63943-global-markets-dollar-s-advance-puts-squeeze-on-gold-commodities-by-reuters.md) | +1.3% | +2.7% |
| USDCNY | 2022-06-13 | [China’s yuan slips to 2-week low as dollar jumps on inflation data - Markets - Business Recorder](https://feedsoft.ai/events/41171-china-s-yuan-slips-to-2-week-low-as-dollar-jumps-on-inflation-data-markets.md) | +0.1% | +0.2% |
| USDCNY | 2025-01-17 | [Markets are betting China will let yuan fall as Trump takes power, but not much \| Reuters](https://feedsoft.ai/events/26716-markets-are-betting-china-will-let-yuan-fall-as-trump-takes-power-but-not-much.md) | -1.2% | -1.1% |

## Sources

- reuters.com: https://www.reuters.com/markets/europe/dollar-finds-buyers-fed-flags-hikes-2022-01-27/

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