# Has the Dollar Become More Sensitive to Interest Rates?

> An FRBSF Economic Letter finds no convincing evidence that the dollar has become more sensitive to US interest rate changes since 2014. It notes that rate divergence between the US and other advanced economies has pushed the dollar up roughly 25% against a basket of currencies. The analysis is research-based rather than a market-moving event.

- Date: 2017-07-01 · published 2017-07-01T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/70702-has-the-dollar-become-more-sensitive-to-interest-rates
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The research clarifies how interest rate divergence drives currency moves that feed into commodity pricing. It offers no new shock to supply, demand or prices.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-12-03 | [Dollar has the interest rate edge to rule for now: Reuters poll By Reuters](https://feedsoft.ai/events/43791-dollar-has-the-interest-rate-edge-to-rule-for-now-reuters-poll-by-reuters.md) | -0.2% | -0.5% |
| 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 | 2024-07-10 | [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% |
| DXY | 2024-03-28 | [The US Dollar Holds Strong as Interest Rate Cuts Are Expected to Be More Gradual in the United States - Desjardins](https://feedsoft.ai/events/31438-the-us-dollar-holds-strong-as-interest-rate-cuts-are-expected-to-be-more.md) | +0.0% | +1.6% |
| DXY | 2017-06-29 | [Global Co-ordination on Interest Rates Could "Do Serious Damage to the Dollar"](https://feedsoft.ai/events/70707-global-co-ordination-on-interest-rates-could-do-serious-damage-to-the-dollar.md) | +0.3% | -1.7% |

## Sources

- frbsf.org: https://www.frbsf.org/research-and-insights/publications/economic-letter/2017/06/has-dollar-become-more-sensitive-to-interest-rates/

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