# Risks of global dollar shortage are rising: McGeever - The Globe and Mail

> Overseas investors are finding dollars increasingly expensive and scarce as the Fed raises rates and shrinks its balance sheet. The cross-currency basis widened sharply on Thursday, the day after the Fed's eighth hike of the cycle, and the cost of borrowing dollars offshore is now the highest since 2009. Quarter-end rebalancing and Italy-related euro outflows may have contributed.

- Date: 2018-09-28 · published 2018-09-28T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/63246-risks-of-global-dollar-shortage-are-rising-mcgeever-the-globe-and-mail
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Tighter dollar funding raises the cost of trade finance and debt service for importers of feed commodities, which can curb purchases and weigh on prices. It also signals a stronger dollar that pressures dollar-priced commodities.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-03-19 | [A global rush into the US dollar is driving extreme market moves and a temporary shortage](https://feedsoft.ai/events/6274-a-global-rush-into-the-us-dollar-is-driving-extreme-market-moves-and-a.md) | +0.5% | -0.9% |
| DXY | 2018-02-13 | [The pain trade: Why the Canadian dollar is aching - The Globe and Mail](https://feedsoft.ai/events/66726-the-pain-trade-why-the-canadian-dollar-is-aching-the-globe-and-mail.md) | -0.4% | -0.2% |
| DXY | 2024-01-31 | [Canadian dollar weakens as Fed rate signal offsets GDP gain - The Globe and Mail](https://feedsoft.ai/events/32333-canadian-dollar-weakens-as-fed-rate-signal-offsets-gdp-gain-the-globe-and-mail.md) | +0.3% | +0.4% |
| DXY | 2022-10-31 | [Canadian dollar slips to six-day low as oil prices fall - The Globe and Mail](https://feedsoft.ai/events/39347-canadian-dollar-slips-to-six-day-low-as-oil-prices-fall-the-globe-and-mail.md) | -0.1% | -2.8% |
| DXY | 2021-07-28 | [Markets tire of anti-greenback bet as central banks diverge - The Globe and Mail](https://feedsoft.ai/events/46294-markets-tire-of-anti-greenback-bet-as-central-banks-diverge-the-globe-and-mail.md) | -0.4% | +0.4% |

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/investment-ideas/article-risks-of-global-dollar-shortage-are-rising-mcgeever/

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