# Why the dollar is weak

> The FT explains that the dollar is weak despite widening US-German yield spreads that would normally attract capital flows. It notes a strong oil price has historically meant a weaker dollar. The weakness has boosted perceptions of US and emerging stock markets relative to strong currencies like the euro and pound.

- Date: 2018-01-24 · published 2018-01-24T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/67171-why-the-dollar-is-weak
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Higher oil prices historically weaken the dollar, which tends to support dollar-priced grains and oilseeds. The divergence from yield spreads makes near-term currency-driven commodity moves harder to forecast.

## Read by commodity

- DXY: bearish ▼
- WTI: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-07-28 | [Why is the US dollar losing its shine?](https://feedsoft.ai/events/35220-why-is-the-us-dollar-losing-its-shine.md) | +1.3% | +2.0% |
| DXY | 2023-11-29 | [The Australian dollar is surging. Here’s why](https://feedsoft.ai/events/33404-the-australian-dollar-is-surging-here-s-why.md) | +1.0% | -0.9% |
| DXY | 2023-05-25 | [Why is the Mexican Peso Gaining against the Dollar?](https://feedsoft.ai/events/36160-why-is-the-mexican-peso-gaining-against-the-dollar.md) | -0.4% | -1.1% |
| DXY | 2019-11-01 | [US dollar could weaken to 85 on the dollar index: Citi](https://feedsoft.ai/events/56262-us-dollar-could-weaken-to-85-on-the-dollar-index-citi.md) | +0.2% | +0.9% |
| DXY | 2021-02-25 | [Why the U.S. Dollar Is More Robust Than It Looks - Bloomberg](https://feedsoft.ai/events/10599-why-the-u-s-dollar-is-more-robust-than-it-looks-bloomberg.md) | +0.9% | +1.7% |
| WTI | 2024-04-04 | [Why is the rupee falling?](https://feedsoft.ai/events/31011-why-is-the-rupee-falling.md) | +0.9% | -6.8% |
| WTI | 2022-07-19 | [Indian Rupee Hits Weakest Level Ever Against the Dollar](https://feedsoft.ai/events/40777-indian-rupee-hits-weakest-level-ever-against-the-dollar.md) | -4.9% | -12.1% |
| WTI | 2022-02-17 | [Why oil and the Canadian dollar are breaking up - The Globe and Mail](https://feedsoft.ai/events/42921-why-oil-and-the-canadian-dollar-are-breaking-up-the-globe-and-mail.md) | -1.1% | +9.8% |

## Sources

- ft.com: https://www.ft.com/video/63919490-c752-460f-9ed3-6fb3bca1cce6

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