# Dollar left devastated by surprise Fed rate cut

> 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%.

- Date: 2020-03-04 · published 2020-03-04T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/7168-dollar-left-devastated-by-surprise-fed-rate-cut
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

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.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-08-05 | [Dollar down as US rate cut bets rise, yen surges](https://feedsoft.ai/events/7431-dollar-down-as-us-rate-cut-bets-rise-yen-surges.md) | -0.4% | -0.9% |
| DXY | 2024-07-31 | [Stocks rise; yields, dollar lower as Fed signals rate cut](https://feedsoft.ai/events/29141-stocks-rise-yields-dollar-lower-as-fed-signals-rate-cut.md) | -0.5% | -1.9% |
| DXY | 2019-06-20 | [Fed rate-cut sign boosts stocks, dollar drops](https://feedsoft.ai/events/7435-fed-rate-cut-sign-boosts-stocks-dollar-drops.md) | -1.1% | -0.8% |
| DXY | 2019-06-20 | [Dollar extends losses on Fed rate cut bets](https://feedsoft.ai/events/7441-dollar-extends-losses-on-fed-rate-cut-bets.md) | -1.1% | -0.8% |
| DXY | 2024-07-31 | [Dollar falls as Fed signals likely September rate cut](https://feedsoft.ai/events/29455-dollar-falls-as-fed-signals-likely-september-rate-cut.md) | -0.5% | -1.9% |

## Sources

- reuters.com: https://www.reuters.com/article/uk-global-forex/dollar-left-devastated-by-surprise-fed-rate-cut-idUSKBN20R02X/

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