# Why the U.S. dollar’s relentless rally is causing pain for emerging markets - MarketWatch

> The ICE U.S. Dollar Index jumped to a more-than-three-year high on March 19, 2020, up 3.9% for the week and 4.5% for the month. The Federal Reserve expanded dollar swap lines to nine countries, including Brazil, Mexico and South Korea, to meet heavy global demand for dollars amid the COVID-19 turmoil.

- Date: 2020-03-19 · published 2020-03-19T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/7018-why-the-u-s-dollar-s-relentless-rally-is-causing-pain-for-emerging-markets
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A surging dollar raises the local-currency cost of dollar debt and weakens emerging-market import capacity, which can pressure demand for US feed commodities and soybean meal in importing countries. Strength in the dollar generally weighs on dollar-denominated commodity prices.

## Read by commodity

- DXY: bullish ▲
- SOY: bearish ▼
- CORN: bearish ▼
- USDBRL: bullish ▲
- USDMXN: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2020-03-20 | 1 | -2.9% | -3.3 | The dollar index hit a multi-year high on March 19 amid heavy global dollar demand, which pressured the real just before the March 20 move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-04-23 | [Where king dollar is causing pain the most](https://feedsoft.ai/events/30983-where-king-dollar-is-causing-pain-the-most.md) | -0.4% | -1.5% |
| DXY | 2018-08-23 | [Here’s how Jackson Hole could impact the dollar, bonds and emerging markets - MarketWatch](https://feedsoft.ai/events/63695-here-s-how-jackson-hole-could-impact-the-dollar-bonds-and-emerging-markets.md) | -0.0% | -0.1% |
| DXY | 2018-09-05 | [Turbulence Roils Emerging Markets In The Shadow Of A Strengthened U.S. Dollar](https://feedsoft.ai/events/63326-turbulence-roils-emerging-markets-in-the-shadow-of-a-strengthened-u-s-dollar.md) | -0.1% | -0.8% |
| DXY | 2019-02-11 | [Why the dollar is back on the rise despite the Fed’s dovish turn - MarketWatch](https://feedsoft.ai/events/60769-why-the-dollar-is-back-on-the-rise-despite-the-fed-s-dovish-turn-marketwatch.md) | +0.4% | +0.4% |
| DXY | 2022-08-29 | [Why is the U.S. dollar so strong right now? - Marketplace](https://feedsoft.ai/events/40218-why-is-the-u-s-dollar-so-strong-right-now-marketplace.md) | +0.6% | +4.4% |
| USDBRL | 2022-11-10 | [EMERGING MARKETS-Brazil's real sinks 4%, other FX rally on dollar weakness](https://feedsoft.ai/events/38888-emerging-markets-brazil-s-real-sinks-4-other-fx-rally-on-dollar-weakness.md) | +6.0% | +1.7% |
| USDBRL | 2018-08-23 | [Here’s how Jackson Hole could impact the dollar, bonds and emerging markets - MarketWatch](https://feedsoft.ai/events/63695-here-s-how-jackson-hole-could-impact-the-dollar-bonds-and-emerging-markets.md) | +1.2% | +0.2% |
| USDBRL | 2018-10-04 | [Soaring US dollar threatens trouble for emerging markets \| Currencies \| The Guardian](https://feedsoft.ai/events/62719-soaring-us-dollar-threatens-trouble-for-emerging-markets-currencies-the-guardian.md) | -3.1% | -4.7% |

## Sources

- marketwatch.com: https://www.marketwatch.com/story/why-the-us-dollars-relentless-rally-is-causing-pain-for-emerging-markets-2020-03-19

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