# Why US rates have a global impact

> The Federal Reserve raised its target rate to 1.75%-2%, its highest since 2008, and is shrinking its balance sheet. Higher U.S. rates have drawn capital from emerging markets and contributed to currency pressure in Argentina, Turkey and Brazil.

- Date: 2018-06-13 · published 2018-06-13T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/64709-why-us-rates-have-a-global-impact
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Emerging-market currency stress raises the cost of imported feed inputs for those countries and can slow their livestock demand, while a stronger dollar weighs on dollar-denominated grain prices.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-09-29 | [Fed rate hike won’t have much impact on Việt Nam](https://feedsoft.ai/events/63320-fed-rate-hike-won-t-have-much-impact-on-viet-nam.md) | +0.7% | +1.8% |
| DXY | 2022-08-15 | [Global exchange rate fluctuations impact local economy](https://feedsoft.ai/events/40345-global-exchange-rate-fluctuations-impact-local-economy.md) | +1.7% | +1.9% |
| DXY | 2021-01-21 | [Global Daily – US rates & dollar changes + ECB preview \| ABN AMRO](https://feedsoft.ai/events/49070-global-daily-us-rates-and-dollar-changes-ecb-preview-abn-amro.md) | +0.6% | +0.6% |
| DXY | 2018-12-18 | [Fed’s policy decisions have a deep impact in emerging markets - The Globe and Mail](https://feedsoft.ai/events/61747-fed-s-policy-decisions-have-a-deep-impact-in-emerging-markets-the-globe-and-mail.md) | -0.2% | -1.8% |
| DXY | 2019-06-18 | [Europe just gave the dollar a boost. Here’s why Trump hates it](https://feedsoft.ai/events/58809-europe-just-gave-the-dollar-a-boost-here-s-why-trump-hates-it.md) | -1.1% | -0.8% |
| USDBRL | 2024-04-19 | [Fed's rate-cut foot-dragging grates on global peers at IMF meetings \| Reuters](https://feedsoft.ai/events/30939-fed-s-rate-cut-foot-dragging-grates-on-global-peers-at-imf-meetings-reuters.md) | -1.8% | -2.5% |
| USDBRL | 2023-09-08 | [Why the US Fed's interest rate pause is a win for dollar bulls \| The National](https://feedsoft.ai/events/34010-why-the-us-fed-s-interest-rate-pause-is-a-win-for-dollar-bulls-the-national.md) | -2.2% | +4.1% |
| USDBRL | 2023-05-24 | [Lula’s Feud with Brazil’s Central Bank Raises Rates Dilemma to Global Stage](https://feedsoft.ai/events/36147-lula-s-feud-with-brazil-s-central-bank-raises-rates-dilemma-to-global-stage.md) | +3.1% | -3.6% |

## Sources

- bbc.com: https://www.bbc.com/news/business-44389203

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