# MUFG: No Guarantee Higher Rates Will Result In A Stronger Dollar | Exchange Rates UK

> MUFG says the Dollar Index weakened early in the week as the dollar traded on the back foot against most major currencies. Markets were positioning ahead of Fed Chair Jerome Powell's first congressional testimony. MUFG believes US conditions may justify higher rates but doubts any dollar strength would be sustained.

- Date: 2018-02-28 · published 2018-02-28T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/66700-mufg-no-guarantee-higher-rates-will-result-in-a-stronger-dollar-exchange-rates
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Uncertainty over whether the Fed's tone will lift the dollar affects the currency's direction for US export commodities. The muted outlook means the dollar's influence on feed prices is unlikely to change sharply without a clear policy signal.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-01-28 | [Brexit Pound Analysis: British Pound Has Rallied 5% Vs Euro, Dollar But How Much Has GBP Discounted A No Deal Brexit? \| Exchange Rates UK](https://feedsoft.ai/events/61332-brexit-pound-analysis-british-pound-has-rallied-5-vs-euro-dollar-but-how-much.md) | -0.2% | +0.0% |
| DXY | 2019-03-06 | [Exchange & Interest Rate Forecasts For Euro, Dollar And Pound Sterling: ING](https://feedsoft.ai/events/60348-exchange-and-amp-interest-rate-forecasts-for-euro-dollar-and-pound-sterling-ing.md) | +0.1% | +0.3% |
| DXY | 2017-01-26 | [Are Interest Rates No Longer Driving the Dollar? - BBH — Octa](https://feedsoft.ai/events/73136-are-interest-rates-no-longer-driving-the-dollar-bbh-octa.md) | -0.5% | -1.1% |
| DXY | 2024-06-28 | [Will the Canadian Dollar Soar This Summer? - Interchange Currency Exchange](https://feedsoft.ai/events/30029-will-the-canadian-dollar-soar-this-summer-interchange-currency-exchange.md) | -0.7% | -0.5% |
| DXY | 2024-07-10 | [Why the Fed cutting interest rates may weaken the U.S. dollar](https://feedsoft.ai/events/29459-why-the-fed-cutting-interest-rates-may-weaken-the-u-s-dollar.md) | -0.6% | +0.2% |

## Sources

- exchangerates.org.uk: https://www.exchangerates.org.uk/news/20732/no-guarantee-higher-rates-will-result-in-a-stronger-dollar.html

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