# A global rush into the US dollar is driving extreme market moves and a temporary shortage

> A global rush for US dollars is driving extreme moves in currency and other markets, with companies and institutions drawing down credit lines and hoarding dollars. The Fed has expanded its swap lines to foreign central banks, but these measures have not reduced the volatility in the dollar. Strategists say G-7 finance ministers may need to intervene.

- Date: 2020-03-19 · published 2020-03-19T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6274-a-global-rush-into-the-us-dollar-is-driving-extreme-market-moves-and-a
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

The dollar funding squeeze raises the dollar's value against trading partners' currencies, which tends to weigh on US-priced grain and oilseed markets and increases import costs for buyers in emerging markets.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼
- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2020-03-20 | 1 | -2.9% | -3.3 | The global scramble for US dollars and dollar hoarding pushed emerging-market currencies like the real sharply weaker, in line with the large BRL/USD move. |
| EURUSD | 2020-03-18 | 5 | -4.0% | -5.3 | The global dollar rush, with companies drawing credit lines and hoarding dollars, describes the mechanism behind the euro's decline, although the report is dated 19 March, just after the window ends. |
| USDBRL | 2020-03-18 | 5 | +9.2% | 4.5 | The global scramble for dollars and credit line drawdowns, in progress around March 18-19, put broad pressure on emerging market currencies including the real. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-09-28 | [Risks of global dollar shortage are rising: McGeever - The Globe and Mail](https://feedsoft.ai/events/63246-risks-of-global-dollar-shortage-are-rising-mcgeever-the-globe-and-mail.md) | +0.6% | +1.3% |
| DXY | 2019-10-04 | [Opinion: What’s driving the rare simultaneous rise in gold and the dollar - MarketWatch](https://feedsoft.ai/events/56489-opinion-what-s-driving-the-rare-simultaneous-rise-in-gold-and-the-dollar.md) | -0.3% | -1.6% |
| DXY | 2020-03-30 | [US dollar rallies as global easing policies give short-term reprieve](https://feedsoft.ai/events/10703-us-dollar-rallies-as-global-easing-policies-give-short-term-reprieve.md) | +1.6% | +1.4% |
| DXY | 2026-06-19 | [EUR/USD Loses Ground as Market Sentiment Favours the US Dollar \| Investing.com](https://feedsoft.ai/events/11516-eur-usd-loses-ground-as-market-sentiment-favours-the-us-dollar-investing-com.md) | +0.4% | +0.1% |
| DXY | 2019-05-10 | [The U.S. Dollar Is Suggesting Global Rates Will Continue To Fall \| Investing.com](https://feedsoft.ai/events/59255-the-u-s-dollar-is-suggesting-global-rates-will-continue-to-fall-investing-com.md) | +0.2% | -0.1% |
| EURUSD | 2026-06-19 | [EUR/USD Loses Ground as Market Sentiment Favours the US Dollar \| Investing.com](https://feedsoft.ai/events/11516-eur-usd-loses-ground-as-market-sentiment-favours-the-us-dollar-investing-com.md) | -0.6% | -0.5% |
| EURUSD | 2017-09-29 | [Dollar's Gains Pared, but Set to Snap Six Month Losing Streak Against the Euro - Marc to Market  Marc Chandler on Global FX and Capital Markets](https://feedsoft.ai/events/69152-dollar-s-gains-pared-but-set-to-snap-six-month-losing-streak-against-the-euro.md) | -0.6% | -1.7% |
| EURUSD | 2026-09-30 | [What is driving the US Dollar to multi-month highs against the Euro as PCE data approaches?](https://feedsoft.ai/events/17694-what-is-driving-the-us-dollar-to-multi-month-highs-against-the-euro-as-pce-data.md) | -0.7% | -1.7% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/03/19/a-global-rush-into-the-us-dollar-is-driving-extreme-market-moves-and-a-temporary-shortage.html

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