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The dollar fell to a five-month low against the yen after the U.S. Federal Reserve cut rates by an emergency 50 basis points in response to the spreading coronavirus. The cut failed to stop a sell-off in U.S. equities, and 10-year Treasury yields fell to a record low of 0.906%.
Lower U.S. rates weaken the dollar, which tends to support dollar-priced commodities, while the risk-off reaction shows markets doubt the cut can offset the demand shock from the virus.
reuters.comStanley WhiteMar 4, 2020After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
