# Dollar wins out as pandemic drives rush for liquid assets - The HinduBusinessLine

> The dollar held gains against most currencies on 13 March as investors sought liquid assets amid the coronavirus panic. A blowout in swap spreads showed a shortage of dollars, and the Fed provided $1.5 trillion in short-term liquidity. Italy effectively locked down the entire country.

- Date: 2020-03-13 · published 2020-03-13T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6275-dollar-wins-out-as-pandemic-drives-rush-for-liquid-assets-the-hindubusinessline
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Rising dollar demand and the Fed's liquidity response push the dollar higher against other currencies, which can weigh on dollar-priced commodities and raise import costs for non-US feed buyers.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2020-03-18 | 5 | -4.0% | -5.3 | On 13 March the dollar kept gaining as a swap-spread blowout showed a dollar shortage and investors sought liquid assets, which added to the pressure on the euro within the window. |
| EURUSD | 2020-03-17 | 1 | -1.5% | -3.2 | On 13 March the dollar kept its gains as a dollar shortage showed up in blown-out swap spreads, which began the dollar-funding squeeze that weighed on the euro in the days before 17 March. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-04-27 | [Dollar set for best weekly gain since Nov 2016 on yield bets - The HinduBusinessLine](https://feedsoft.ai/events/65734-dollar-set-for-best-weekly-gain-since-nov-2016-on-yield-bets-the.md) | +0.7% | +1.9% |
| DXY | 2017-05-04 | [Commodities nerves grow after Fed boosts dollar - The HinduBusinessLine](https://feedsoft.ai/events/70922-commodities-nerves-grow-after-fed-boosts-dollar-the-hindubusinessline.md) | +0.4% | -1.2% |
| DXY | 2023-09-26 | [Rupee falls on month-end dollar demand, higher US yields - The HinduBusinessLine](https://feedsoft.ai/events/34390-rupee-falls-on-month-end-dollar-demand-higher-us-yields-the-hindubusinessline.md) | +0.8% | +1.3% |
| DXY | 2017-05-11 | [Dollar at 8-week high vs yen on US economic optimism - The HinduBusinessLine](https://feedsoft.ai/events/71232-dollar-at-8-week-high-vs-yen-on-us-economic-optimism-the-hindubusinessline.md) | -1.2% | -2.0% |
| DXY | 2017-12-25 | [Dollar steady but its funding costs soar ahead of the year-end - The HinduBusinessLine](https://feedsoft.ai/events/67697-dollar-steady-but-its-funding-costs-soar-ahead-of-the-year-end-the.md) | -1.3% | -3.6% |
| EURUSD | 2019-05-28 | [Dollar ticks up, euro's post-EU vote bounce proves brief - The HinduBusinessLine](https://feedsoft.ai/events/59289-dollar-ticks-up-euro-s-post-eu-vote-bounce-proves-brief-the-hindubusinessline.md) | +0.1% | +1.8% |
| EURUSD | 2019-07-26 | [The Euro-Dollar Rate is In Line for Forecast Downgrades as ECB Eyes Stimulus](https://feedsoft.ai/events/58314-the-euro-dollar-rate-is-in-line-for-forecast-downgrades-as-ecb-eyes-stimulus.md) | -0.8% | -0.6% |
| EURUSD | 2017-05-03 | [Dollar Inches up as Fed Eyed for June Rate Steer \| Fox Business](https://feedsoft.ai/events/71192-dollar-inches-up-as-fed-eyed-for-june-rate-steer-fox-business.md) | -0.3% | +3.0% |

## Sources

- thehindubusinessline.com: https://www.thehindubusinessline.com/markets/forex/dollar-wins-out-as-pandemic-drives-rush-for-liquid-assets/article31056821.ece

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